A preliminary unaudited revenue collection report—covering the first-six months of fiscal year 2014—shows the government collected more than $40 million, with taxes bringing in the highest revenue.  However, based on the trend of collections for the period of Oct. 1, 2013 to Mar. 31, 2014, the government is forecasting a shortfall of just over $14 million at the end of the fiscal year, which closes Sept. 30, 2014.

REVENUE COLLECTION

The total revenue collection forecast for ASG in FY 2014 is $105.13 million, and this includes $13.76 million in annual ASG basic operation funding from the U.S. Interior Department, according to the preliminary report, which shows that based on current collection trends for the first-six months, only $91.11 million will be collected by the end of FY 2014, resulting in a $14.02 million shortfall.

As of Mar. 31 this year, the preliminary report shows that ASG has so far collected $42.14 million in revenue.

ASG’s biggest revenue source is from taxes — which are projected be collected to the tune of $71.37 million in FY 2014.   However, the preliminary report shows that, based on current collections for the first-six months, ASG is projected to collect only $61.65 million by the end of FY 2014, causing a shortfall of $9.71 million for taxes.

Of total projected tax revenues in FY 2014: $17.20 million comes from corporate tax; $25.11 million in individual income tax; $25.05 million for excise tax; $2.50 million from the soda tax; and $1.50 million in military cover-over tax.

As of Mar. 31, 2014 (the end of the first-six months of FY 2014) total tax collection stands at $30.23 million, which includes $8.72 million in corporate tax; individual income tax $11.18 million; $9.07 million for excise tax; $1.08 million soda tax and $159,537 for military cover-over tax, the preliminary report shows.

According to the report, ASG is projected to collect in corporate taxes an excess of more than $250,000 by the end of FY 2014 - based on the current collection trend. This is the only tax category expecting to collect more than projected by the end of FY 2014.

Sources in government, however, told Samoa News yesterday that ASG is still expecting to meet their budget projection of $71.37MIL in the last six months of the fiscal year, adding that Customs and tax office are working diligently in collection efforts.

The same sources also say that the government has not yet received payment for its share of the tobacco loan proceeds, which was expected last month to the tune of $1.2 million — as cited in the budget — and will be included in the third quarter that ends July 31, 2014.

Additionally, ASG has forecast $5.6 million in ‘indirect cost’ but none of this money was received in the first-two quarters of the fiscal year; however this money is expected to be received during the third and fourth quarters, said sources. (Indirect costs are funds, which ASG receives for administrative fees coming from federal grantors.)

Samoa News will report later this week on expenditures for the same period as well as other information cited in the preliminary data.