Central’s application dismissed

AN application filed by the Central government to dismiss a proceeding against the National Capital District Commission (NCDC) and the Internal Revenue Commission (IRC) has been dismissed by the National Court.
Judge Thomas Anis presiding in the Waigani National Court ruled that there was an arguable case which required a full hearing.
The matter concerns a decision made by IRC commissioner general Sam Koim on April 22, 2021, to distribute to Central, the Motu-Koitabu Assembly and Gulf, the goods and services tax (GST) component which goes to the NCDC.
Based on that, NCDC had sought various declaratory relief in its originating summons.
The relief sought essentially to relate the application of provisions under two legislations: the NCDC Act 2001 and the Inter-Governmental Relations (Functions and Findings) Act 2009.
Under the amended NCDC Act of 2021, the IRC is required to distribute a portion of the GST to the Central government (10 per cent), Gulf government (three per cent) and Motu-Koitabu Assembly (two per cent).
Section 40 of the Inter-Governmental Relations (Functions and Findings) Act 2009 which governs the distribution of GST to provincial governments, provided that NCDC was entitled to receive 60 per cent of the GST collected in NCDC.
On Feb 23 this year, Central government filed a notice of motion to dismiss the proceeding the IRC, Koim, State and Gulf government had supported.
Central government lawyer Ganjiki Wayne said the relief sought for NCDC’s case did not primarily involve provisions under the Inter-Government Relations Functions and Funding (IGRFF) Act 2009.
But rather section 33 of the NCDC Act of 2001, and since the issue has now been clarified by the NCDC Act 2021, the proceeding should come to an end. NCDC through its lawyer however opposed this stating that Central government’s argument was misconceived.
It also added that Central government’s claim was not limited to the interpretation or clarification of section 33 of the NCDC Act 2001 but concerned primarily the interpretation of relevant provisions under the IGRFF Act.
The matter returns to court on Thursday for a directions hearing for trial.