Chamber Supports Eni’s Tax
and Economic Reform Efforts

Used by permission of the American Samoa Tribune

By Andrew Fa’asau

Congressman Faleomavaega Eni Hunkin yesterday requested the assistance of the American Samoa Chamber of Commerce (ASCOC) in order to achieve his objectives in strengthening the economy and assisting with the facilitation of new investments in the Territory.

He was speaking at a luncheon hosted by ASCOC at The Equator Restaurant.

Faleomavaega pointed out that every State and Territory should have an active Chamber of Commerce to help formulate strategies for better economic developments. However, in past years this had been lacking in the Territory and he had been very critical of this fact because there had been no input from them on economic development and strategies.

“If I wanted to understand the current economic situation in the Territory, I wouldn’t go to the Fono, I would go to the Chamber of Commerce,” he pointed out. Faleomavaega told the gathering that he was a very pro-business democrat and his working philosophy was free enterprise.

However, he did not like the idea that the local Filipino and Korean communities had formed their own chambers of commerce.

“I don’t like that,” said Faleomavaega. “It tells me that they have their own interests in mind when we should all be working together to provide a healthy business climate that would benefit everybody and ultimately our economy.”

With regard to the two year tax extension for the canneries approved recently, the congressman pointed out that it would not have eventuated without the assistance of certain Republicans in Congress like Rep. Bill Thomas who is the chairman of the Ways and Means Committee.

He emphasized that American Samoa cannot afford to be partisan to get the support of Congress.

He also stressed the importance of formulating a long term economic policy to direct the growth of the Territory’s economy.

However, according to Faleomavaega, there is a dire need to “overhaul our whole local tax system.”

He said that the current tax regime is so unfair especially to non-US companies that it invites favoritism and corruption.

Faleomavaega said the Tax Exemption Board is a farce and is not effective as it is supposed to be.

He also pointed out that he had managed to acquire a federal grant of $600,000 to fund an Economic Study Review Commission to determine strategies and reform policies that would boost the Territory’s economy.

“That was four years ago,” Faleomavaega said. “Up to now, not a whit has been done by government on the commission’s report. This should initiated by government but nothing has been done. No strategy, no legislation to support the commission’s report. I don’t even know what our economic priorities are! No way am I making a proposal to Congress until I am clear what our economic situation is and the reforms we need to put in place.”

He said that the current tax regime is allowing government to double-dip which is very unfair and illogical if the Territory wants to attract foreign investors.

The congressman was referring to the Corporate Taxes and the additional Dividend Withholding Taxes and Investment Taxes the government charges non-US companies. In his response to Congressman Faleomavaega remarks, ASCOC president David Robinson assured him that the Chamber was very supportive of his initiative and Governor Togiola’s recent initiatives to attract foreign investments.

With regard to the local Filipino and Korean business communities forming their own chambers of commerce, Robinson explained that prominent Filipino and Korean businessmen Susing Alivia and Lee Hyun-Hwi were both members of the ASCOC executive committee and were very instrumental in getting business people of their respective communities to join the Chamber.

“I would like to commend Congressman Faleomavaega and Governor Togiola for their efforts to improve the Territory’s economy by attracting foreign investors,” Robinson told the Tribune. “I’d also like to advise them to be very cautious in approaches to potential non-US investors in making sure that the playing field is level and appropriate incentives are available in terms of tax regime and the general package of incentives. Also to take in consideration inherent problems like the cost of labor, power utilities and transportation.

“The ASCOC will take on a supportive and advisory role to address the concerns and needs of the private sector. We will do our part in expanding the economic base and new investment in the Territory. I look forward to the opportunity of meeting with Governor Togiola Tulafono, Senate president Lolo Moliga, the directors of the Department of Commerce and the Treasury and other departments involved in economic development.”

Robinson also said that the ASCOC is in the process of formulating a White Paper highlighting what it sees as potential opportunities for new investors and development to strengthen the economy of the Territory.