Federation supporting tax reform

THE Employers Federation of PNG (EFPNG) supports tax reform, especially one intended to simplify the tax system, a statement says.
But it believes that a detailed and open consultative process through a work programme with organisations representing the private sector is essential to ensure effective reforms and implementation before a revised Income Tax Act is undertaken.
EFPNG president David Boig said in the statement: “We understand that there has been further discussion and engagement between the IRC (Internal Revenue Commission) and Treasury in relation to the New Income Tax Act, although there has been no further consultation with other stakeholders since the first half of 2020.
“The timing of any potential release of a revised draft, or whether they have even considered any of the submissions that Treasury received from external stakeholders over a year ago remains unclear.
“And if there has been no change to the implementation timetable released earlier, then Treasury anticipates that the new Income Tax Act and the Tax Administration Act will be passed and in force from Jan 1, 2022.
“We are concerned that the proposed re-write will make a number of fundamental changes to the fiscal regime affecting employers and employees in PNG, and in the absence of explanatory materials it is still remains unclear which of these changes are intended.
“It is important that the impact of this tax reform and the issues raised in our submission lodged last year on behalf of our members are properly considered to ensure the law operates as intended.”