Committee hopes to broaden tax base

 The committee conducting the review of the country’s current tax system is hoping to broaden the tax base through the introduction of another area of taxation.

Chairman of the committee Sir Nagora Bogan said last week following the conclusion of the review in Kokopo that currently the tax load was being shouldered mainly by companies and individual salaries tax, while only a small portion was covered by the goods and services tax and export and import tariffs.

The potential area of taxation to be looked at was in capital or asset gains, which refers to taxation on profits gained by the owner from the sale of properties over a period of time.

Sir Nagora said this system was used in other parts of the world and if it was feasible in the country then it would be introduced. The tax will not only be restricted to profits from capital gains but also on shares.

He said this was so the tax burden was spread to other sectors so that the country did not continue to depend on income and consumption taxes, which provide 70% of tax returns.