Customs warns importers, manufacturers

IMPORTERS and local manufacturers have been told to comply with the laws and pay their tax dues or face penalties of up to K1 million or more.
PNG Customs chief commissioner David Towe sounded this warning at the signing of a memorandum of understanding (MoU) with the Motor Vehicle Insurance Ltd (MVIL) in Port Moresby on Wednesday.
“Last year, we increased all the penalties that applies to the non-compliance, in the past it was not tough,” he said.
“The penalties have increased almost 100 per cent to 200 per cent, even up to a million Kina, even one of the importers who tried to evade taxes, we applied close K1.2 million in penalties, that’s unheard of.”
Towe said Customs projections was going well, currently at 4 per cent above projection.
“This year, we were required to collect K3.8 billion in revenue, out of that we have done K1.6 billion already, so that is close to 42 per cent done,” he said.
“What we do at the final quarter of the year, is that we do a run-off exercise, in that we look at how much we have collected so far, and in the final quarter, everybody goes full swing, to make sure that we collect all the unpaid taxes and chase down anybody who has breached the law and apply a very heavy penalty for non-compliance.”
Towe encouraged importers and local manufacturers to comply with the laws, so his office do not have to chase after what the State was owed because the State would eventually catch up with all non-compliant businesses.