Government to review entire revenue system

 By MALUM NALU

THE Government has initiated a review of the entire revenue system, including both tax and non-tax revenue, to be headed by former head of Internal Revenue Commission Sir Nagora Bogan.

Treasurer Don Polye told a Port Moresby Chamber of Commerce and Industry breakfast yesterday that Sir Nagora led the last review 13 years ago. 

“The logistics for establishing the review are nearly complete, with the secretariat offices due for completion at the end of next week and the recruitment process for key staff members about to be undertaken.

“A key part of the process of this review will be consultation with businesses and the community.  

“The planned focus of the review for the next few months up to the 2014 Budget will be two-fold. 

“First, to see if there are any administrative measures that can quickly help increase tax collections. This is vital as we have built into our budget estimates an estimated increase of K200 million in tax collections as a result of improved compliance. 

“The second element will be consultations on the best way to ensure we tax our resource sector in a way that is both conducive to investment and production, but also ensures that the people of PNG receive a fair share of the resources that collectively we own.” 

Polye said other key parts of the tax system would be reviewed during 2014 and the outcomes fed into the 2015 Budget process. 

“As this consultation occurs, it would be a shame if the focus of discussions was only about tax incentives such as tax holidays,” he said.