Investors of govt bills raise concerns over tax

National

INVESTORS in Morobe who want to participate in Government’s Treasury bills and inscribed stock are concerned with the 15 per cent monthly tax during investment and on interest earned.
Many are also concerned over the high monthly tax on personal savings accounts by commercial banks, discouraging farmers and low-wage earners.
Almost 500 people attended  a presentation from the Bank of Papua New Guinea (BPNG) and Treasury Department over the Kina Automated Transfer System (KATS) and two government securities-treasury bills and inscribed stock through retail and wholesale markets.
The BPNG and Treasury officials were told  that though the presentation was inspirational, many people were unable to save money in commercial banks due to strict bank policies.
Instead, IRC was urged to relax its policies to encourage a savings culture and enable citizens to save with commercial banks to strengthen the value of the kina.
Gibson Gotoha, from the Treasury Department, said: “We take note of your concerns over 15 per cent tax and will raise it with IRC for clarification.”
BPNG and the Treasury Department educated consumers, farmers and companies on how to invest in Treasury bills and inscribed stock through the retail and wholesale markets including the Treasury bond tap facility.
Gotoha said the Treasury bills and inscribed stocks investments were open to the general public and
commercial banks, financial and non-financial institutions, savings and loans, insurance companies, superannuation funds, and individuals.
However, IRC’s monthly 15 per cent tax during investment and also deducted on the interest earned concerned many participants.
The Treasury bill is a discounted security issued by the Government in a short-term debt arrangement with maturities within 91, 182 and 364 days.

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