Senate resolution calls for ASG to pay all outstanding tax refunds and debts to private vendors by Monday

Pago Pago, AMERICAN SAMOA — With the last day of FY 2024 approaching next Monday September 30th, the Senate Budget & Appropriations Committee yesterday held a hearing on a resolution introduced this week requesting the Governor to direct the Treasurer to pay all outstanding tax refunds and pay all ASG debts to private vendors before the end of the current fiscal year.

The resolution, introduced by Sen. Malaepule Saite Moliga says nine months into 2024 only those who filed their taxes between January 1 and February 29 have received their tax refunds.

“The extended waiting periods have become a significant concern for both the Senate and residents of American Samoa,” says the Senate Resolution.“The withholding of taxpayer refunds is both alarming and unwarranted. This delay has severely impacted many individuals and their families who are relying on their tax refunds to support their financial obligations.

The resolution added that "the Senate has received numerous complaints from the private sector of unpaid invoices. Paying off government vendors promptly is crucial for maintaining the integrity and efficiency of public services.

“Timely payments ensure that vendors will continue to provide essential goods and services without interruption, which is vital for the smooth operation of government functions. Moreover prompt payments help stimulate the local economy by ensuring businesses have the necessary cash flow to pay their employees, invest in growth and contribute to the community.

"Ultimately, honoring financial commitments to vendors reflects a government's commitment to fiscal responsibility and transparency, reinforcing public confidence in its operations," the Senate Resolution emphasized.

ASG Treasurer Malemo Tausaga and Governor's Office Chief of Staff Loa Tuimavave Laupola testified in the hearing yesterday morning.

Committee Chairman Senator Utu Sila Poasa clarified that the purpose of the hearing was to determine whether tax refunds for local taxpayers and outstanding bills of private companies would be paid out before the end of the current fiscal year, which concludes next Monday.

Treasurer Malemo responded by explaining that there had been a Tax Reserve Account where 25% of corporate tax funds were deposited and earmarked for this purpose. However, when the current administration took office, there were no funds in this account.

He stated that the American Samoa Government has been utilizing local revenue to pay tax refunds, invoices from vendors for services rendered, contracts, and all government operations.

Malemo revealed that, to date, 13,166 taxpayers have filed for tax refunds, with 10,808 already having received their payments. He mentioned that the remaining refunds will be disbursed in approximately four batches.

He explained that the tax disbursement procedure follows the calendar year rather than the fiscal year. For instance, he noted that a taxpayer who files for a tax refund for the fiscal year 2022 can expect to receive their refund by December 2023 at the latest.

The resolution’s sponsor, Senator Malaepule Saite Moliga, advised that the government prioritize the payment of tax refunds before the end of the current fiscal year.

He emphasized the need to identify and utilize local revenue sources to make these payments, as well as to settle outstanding bills owed to local companies.

Malaepule stressed that this was imperative to restore the public’s confidence in the administration.