Commission misses K2bil revenue amid curbs

THE Internal Revenue Commission missed out on collecting about K2.16 billion in revenue during the first Covid-19 lockdown period last April.
But commissioner-general Sam Koim said they managed to collect a total of K8.2 billion last year “due to the mitigating strategies adopted and the Government’s decision to reopen the economy”.
Koim said the mining and petroleum tax dropped by 75 per cent. “I do not have the exact figure but 75 per cent was a substantial amount of money,” he said.
“The industry reacted badly.
“The oil price drop was anticipated, but gold did really well yet, the mining companies were shut.”
Koim said of the K8.2 billion, IRC transferred K578 million (60 per cent of goods and services tax) to provincial governments.
A further K228 million was provided to taxpayers as GST refunds and K8 million transferred to provincial governments as bookmaker’s revenue.
After the disbursements totalling K814 million, the net amount of K7.38 billion was transferred to the Waigani public accounts to fund the National Budget.
It is 4.3 per cent (K306 million) above the 2020 supplementary budget projections.
Koim said all taxes performed poorly except personal income tax which recorded a 10 per cent increase and the royalty/management fees recording 17 per cent.
The 10 per cent increase in personal income taxes was due to the decision to switch off the unverified GST credit offsets against salaries and wages taxes.
It resulted in an average revenue increase of K30 million per month.