Firms urged to have tax files

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By Gynnie Kero
PRIME Minister Peter O’Neill is assuring the business community that there will be no tax increases but companies are required to be registered and have tax file numbers.
He said over the past five years the government had maintained positive economic growth despite a very challenging global environment.
“Our economic fundamentals remain sound, even when facing pressure, and continue to be maintained through careful and sensible management.
“The national economy is projected to continue to grow at 3 per cent this year, and build on previous years of positive economic growth.
“At the same time, similar economies around the world are facing economic decline.
“We are running a deficit budget, and that is sensible considering the pressures on the economy at the current time.
“We cannot sit and wait for the global economy to recover, we must continue to invest in our people, and we must continue
to invest in infrastructure in key sectors.
“The global economy is recovering, and we have to continue to ride the end of the storm as economic conditions improve.
“Prices for our key mineral exports are still trending at low levels, but better than in 2016.
“To mitigate the risks and ensure macroeconomic stability, our government will continue to carefully monitor economic developments affecting revenue streams.
“We will deliver a 2017 supplementary budget, as a natural course of action for any new government.
“The supplementary budget will ease financing pressures while ensuring the ongoing delivery of essential services.
“Particularly in core policy areas, we will make necessary adjustments to achieve the fiscal deficit target of this year’s budget.
“We are not contemplating new taxes as part of the 2017 supplementary budget.
“Our critics can say all they want, but in the previous term of government we did not raise taxes.
“We will continue to focus on achieving sustainable economic growth and maintaining a sound fiscal path.
“Attention will continue on revenue generation to support social development objectives.
“We will continue to enhance the quality of government expenditure and manage debt to maximise growth.
“With support from the IMF and World Bank, we are currently reviewing a study of the medium-term fiscal strategy to ensure
that our budgets are framed prudently.
“In the 2018 national budget, there will be a renewed focus on implementing a revenue system that is just, efficient and responsive to the needs of our country.
“We are not increasing taxes, but ensuring it is fair for all who should pay tax.”