GST widened for broader tax base

broader tax base

THE Western Samoan government is to expand a 10 per cent Goods and Sales Tax to include professionals, some forms of insurance, and tourist support services. GST is currently applied only to a small number of items in hotels and restaurants.

The change takes effect on July 1. The professional classes that will be affected include law, valuation, consultant engin eering, surveying, pharmacists, in surance, medicine, dentistry, architec ture, auditing and accounting.

Finance Minister Tuilaepa Sailele said in his budget statement tabled on June 6 that government wanted to widen the tax base, to ease the burden on salary/ wage earners and companies. There are plans to introduce a universal consump tion tax early next year which will cover all sectors of the economy. In his budget, Tuilaepa said total planned expenditure would be at a record W5T222.59 million for the fiscal year starting July 1.

Balance of payments were expected to show a reduced surplus during the fiscal year. Manufacturing and tourism would receive the closest attention, he said. □