Bill creating Economic Development Fund gets Fono approval, now heads to Governor for review
A Senate legislation calling for the creation of an Economic Development Fund to be administered by the Development Bank of American Samoa has been routed to Governor Togiola Tulafono for his review, after the legislation got approval from both Fono chambers.
The bill calls for an annual appropriation of $1 million to DBAS, to assist the Bank in promoting private enterprise and developing the local economy.
The annual appropriation is to come from the Income Tax Reserve Account which at present, is funded by 25% of all corporate income taxes. But under the bill, this will change.
In addition to corporate taxes, additional funding that will be deposited into the account will come from 25% of income taxes collected from a partnership, joint venture, limited liability company, or other business entity.
In a statement to the House Budget and Appropriations Committee which reviewed the legislation, DBAS president Utu Abe Malae said that the legislation will enable DBAS to loan to the needy as well as create and develop various businesses that will diversify our economy and make American Samoa less dependent on the canneries.
Utu said the legislation creates jobs for local residents and revenues for the government, and the Fono can trust DBAS to properly manage any monies from the Economic Development Fund to benefit the people, businesses, and economy of American Samoa.
According to Utu, diversifying the local economy is a key recommendation from several territorial economic development studies.
He concluded by saying that with the passage of the Senate bill, the Fono will show Congress, the US Department of Interior, and the US federal government that the local Legislature is taking the initiative through local statutory measures to develop American Samoa’s economy, instead of relying only on federal financial assistance and Congressional action.
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