Govt introducing tax for individuals operating MSMEs: Basil

DEPUTY Prime Minister Sam Basil says the Government is introducing significant concessional tax rate to individuals operating micro-small-medium enterprises (MSMEs). “This will help reduce tax for MSMEs,” he said when launching the small business tax (SBT) regime through live streaming on Friday. “This Government supports MSMEs and we want to encourage graduates to be entrepreneurs in larger numbers and profitability, especially in the midst of the continuing impact of the Covid-19 in PNG and globally. “The government also recognised the challenges that the small businesses face when trying to pay taxes. “This is why the Internal Revenue Commission (IRC) commissioner general Sam Koim and his team, the SBT legislation, was endorsed by the Government in Parliament in 2019/20.” Basil, who is also Commerce and Industry Minister, said that through this law the Government introduced the SBT that had minimal procedures to follow with low tax rates. ‘”The SBT has been gazetted to take effect from May 21,” he said.  “The official launching today in Port Moresby and live stream to regional tax centres in Kokopo, Lae and Mt Hagen kicks off the programme.
“It is simple because the process requires small businesses to file a one page tax return at least four times a year and pay on average K62.50 per quarter or file a one page tax return once a year and pay a flat rate of K250. “Small businesses are our productive way for Papua New Guineans to use their talents to meet their basic needs and provides a service.
“Our tax rules and regulations require that you pay a tax when you make money. “The small business tax will allow small business to get use to keeping records and paying taxes as well.” Basil said SBT would help MSMEs to participate in the formal sector economy. “The SBT can also be regarded as a Covid-19 tax relieve measure for MSMEs to reduce operating compliance cost. “We hope this will result in a better chance of survival and recovery for businesses.”