Chimbu, IRC sign deal

THE Simbu government and Internal Revenue Commission (IRC) aim to increase tax collection in the province by signing a memorandum of understanding (MoU) recently.
Administrator Michael Temai said although the Simbu government had some business entities and income generating assets, they were not making money, hence, they were relying on the 60 per cent GST (good service tax) revenue that IRC transferred each month.
“The revenues we receive from the GST component pays for the provincial government’s operations and the allowance for the PEC (provincial executive council) members,” he said.
“We, therefore, need to work together to increase this revenue under this MoU and that will definitely empower us to improve our cash flow position to finance other projects in the province.”
Temai said the provincial government would work with IRC officers on the ground to ensure businesses operating in the province comply with their tax obligations.
Koim said IRC was undergoing an organisational redesign and realignment process where provincial outlets would be empowered to operate more effectively.
“If you feel that there are some taxpayers that are unjustly benefitting from the services that your administration is providing but are not paying their fair share of taxes, inform our team on the ground,” he said.
“Taxpayers want to see that their tax is at work, so it encourages them to willingly pay their taxes.
“With this partnership, we look forward to work with you and explore ways where we can increase taxes.”
According to the IRC, the commission currently has an office in Kundiawa, which had registered more taxpayers than Southern Highlands, Hela, Enga and Jiwaka and required increased compliance activities.