Back to news article list

StarKist Samoa Receives Tax Exemption Approvalff

27 January 2011 American Samoa

Source: Samoa News

StarKist Samoa has been operating without a tax exemption for more than six months after the last one expired sometime last year. StarKist went through the process of obtaining a new tax exemption, such as appearing before the ASG Tax Exemption Board late last year.

 

A government official told Samoa News early last week that Gov. Togiola Tulafono has signed the StarKist tax exemption certificate but provided no other details. And then last Thursday during a Senate committee hearing, a Human Resources Department official mentioned that StarKist is hiring and some DHR trainees have been referred to the cannery.

 

Mary Sestric, the StarKist Co. spokesperson based at company headquarters in Pittsburgh, Pa. confirmed the tax exemption being approved by the governor and the cannery hiring additional workers.

 

“...we appreciate the Governor’s support in signing the tax exemption certificate,” said Sestric via e-mail. “Because of the tax exemption, as well as better clarity on wages and the 30A tax credit, StarKist will bring additional volume to the American Samoa facility this quarter.”

 

“While it is only a temporary increase in volume, it will require additional workers in the short term,” Sestric explained. “This volume increase is not long-term, but we are hopeful that with the continued support of American Samoa’s leaders, we can find a permanent solution to making American Samoa globally competitive again, for the mutual benefit of StarKist and the island.”

It’s unclear as to the specifics of the tax exemption certificate, which includes the number of employees the company is supposed to have on its workforce.

The minimum wage hike that was to go into effect last September has been postponed for one year by the U.S. Congress, who approved late last year federal legislation which included a provision extending the 30A tax benefit for another two years. The tax credit, as it is worded, benefits only StarKist.

Congressman Faleomavaega Eni has said that he will work with other congressional members in the current Congress to modify this federal tax benefit, “so that it works for both StarKist and Tri-Marine and any other business that wants to operate in American Samoa.”

StarKist implemented in August last year phase one of a reduction in workforce, which was first announced last May.  They have since held off in the implementation of phase two while reviewing all options.