The American Samoa Chamber of Commerce has shot down a proposal by the government Treasurer to impose a 5 percent gross receipts tax, or GRT, on businesses and non profit organisations.
The Chamber's chairman David Robinson says the comments the chamber has recievd highlight there is virtually no support in the private sector for the GRT.
He says the GRT was a repressive tax coming at a time when the economy is weak and busineses are suffering.
"We feel that this question of GRT is going to be an increase in taxation, an increase in responsibilties for all the private sector to be coming up with funds we see the government should be responsible for coming with not the private sector."
David Robinson says members would prefer a sales tax.
The Treasurer says the government needs 40 million US dollars to fund roads, schools, the hospital and other major infrastructure, and the GRT was the easiest way to raise that money.