Employees being taxed too much

Letters

In a story yesterday Business section titled “Reduce tax so that people have spending power” (The National, Thursday, Nov 18 – Pg26), according to the Papua New Guinea Manufacturer’s Council, must be given serious thoughts by any National and provincial government’s economic planners.
Right now, Government is collecting fortnightly tax deductions from public and private sector employees’ income, taxing salaries and wages and, at the same time, the goods and services tax (GST) meaning our workers are paying double taxes.
Employees are working for their families bread and butter and they have no choice but to buy and spend every day to sustain themselves and their families and wantoks.
Let me give you an honest example, a middle class public servant employee who earns K995 a fortnight has K150.00 deducted as income tax, leaving him/her with K840 for his family.
On that same day, his wife and children wait for him/her outside and they walk into a nearby shop and spend around K400 on store goods, not knowing that K55 was for GST.
The family went home with around K390.
Then you have rent, water and electricity bills, lunch money for children and bus fare, haus krai, bride price, etc, leaving them with nothing and forcing that family to go to, what we call dinau lain (loan sharks), borrowing money which may give temporary relief, but it will be added pressure and an added expense for the breadwinner come next fortnight.
I would suggest the Government do away with the salaries and wages tax in order to increase spending powers in order for both the National and provincial governments to collect more money from GST fortnightly and being fair to our public and private sector employees nationwide.
Let us be realistic and honest, GST on goods and services is waiting anywhere you go, buyers and sellers and we will not escape it.
This will mean that the Internal Revenue Commission (IRC) and the National Planning officials need to come up with planning and tougher laws in enforcing the GST collections and measures on all business houses to collect and pay GST taxes to National and provincial governments on timely manners.

Samson C Napo
Former Bulolo MP