Samoa Might Waive Diesel Fuel Tax For Seinersff

In American Samoa Gov. Togiola Tulafono submitted recently to the local parliament, the Fono, a measure that would provide a tax credit or refund to fuel suppliers that sell diesel fuel to commercial fishing vessels, so the fishing boats could refuel in American Samoa.

This measure appears to be a follow-up to the executive order by then Acting Governor Ipulasi Aitofele Sunia last September, waiving the excise tax on sales of diesel fuel to commercial fishing vessels.

Local law calls for the American Samoa Government (ASG) to levy a $0.035 cent per gallon excise tax on all imported diesel fuel. According to the governor, the incentive measure is to make sure that American Samoa remains competitive with other island countries in the region. Sione Kava at the government's Office of Petroleum Management said diesel fuel sales to commercial fishing boats in the past three years has declined.

In 2002 a total of 28 million gallons were sold, 23 million in 2003 followed by a drop last year to only 18 million gallons.

Kava said American Samoa continues to face stiff competition from Fiji and tankers that are refueling fishing vessels at sea.

Calling it an “important legislation,” Togiola informed the Fono leadership in a Jan. 12 communiqué, that the measure amends ASCA Section 11.1002,  “providing for a tax credit or refund for the fuel suppliers, who sell diesel fuel to the commercial fishing vessels that patronize American Samoa for their refueling needs.”

“The intent of the bill is to provide an incentive to the suppliers of diesel fuel which may in turn be passed on to those commercial fishing vessels that refuel in American Samoa,” Togiola explained.

”The Territory's price for diesel fuel, at present is not very competitive with our regional neighbors,” said the governor. “As such, there has been a significant decrease in diesel fuel sales as commercial fishing vessels are following the cheaper prices. This bill goes a long way toward making our fuel prices more competitive in our region.” Togiola said protections are written into the bill “in order to ensure accountability in the collection of the credit or refund.”

Commercial fishing vessels is described in the language of the bill, as “all purse seiners and longliner vessels actively engaged in commercial fishing in excess of five tons dead weight, plus refers or 'Mother Ships' that are used to tranship fish products.”

To further encourage vessels to use American Samoa as a refueling port, the language of the bill says, “diesel fuel tankers that provides fuel at sea to the commercial fishing vessels” are included as commercial fishing vessels.

The bill provides an immediate effective date once it is approved by both chambers and signed into law by the governor.