Central to halt utility services if GST component not met: Agarobe

By DALE LUMA
CENTRAL governor Robert Agarobe says his province is prepared to shutdown utility services to Port Moresby if the National Capital District Commission (NCDC) does not pay an estimated K10 million in goods and services tax (GST) it owed.
Agarobe said his province had not been paid its GST share for the last 10 years.
He said his administration would shut down transport links, water and power generation services if NCD didn’t settle the unpaid funds by the end of the month .
He said the issue went back 20 years with NCD only giving Central less than two per cent of its GST which contravened the NCD Act which required it to pay 10 per cent.
“Ten months ago because of political reasons, NCDC stopped paying the less than two per cent component, that it has been paying us into our internal revenue,” he said. “This component has been captured in our budget.
“The component has been stopped 10 months ago and had put us in a very bad place and we can’t deliver on our budget for this year.
“If they want to go by the law, it (NCDC) is already in breach of the Act because it has been giving us less than 10 per cent of what it supposed to give us.
“We have had enough of this and are putting our foot down to get what rightfully belongs to us.
“We are shutting down roads, water and power by the end of the month if nothing is done.”
Koiari and Hiri local level governments are ready to shut down the water and power facilities and highways if Central’s demands are not met.
The Internal Revenue Commission (IRC) announced last Thursday that it would distribute to Central, Gulf and the Motu-Koitabu Assembly the GST component which goes to NCDC in accordance with (amended) section 33(2) of the National Capital Act 2001.
“We want to thank the Government that through IRC, the status now identified and recognised this issue that we have been having for a very long time,” Agarobe said.