Govt urged to return tax

A LOCAL tourism industry group is calling on the government to return half of the 10 per cent GST collected from hotels as a means to fund provincial tourist offices.
The newly-formed Madang Tourism Industry Association (MTIA) president Sir Peter Barter reiterated his call on reintroducing a bed tax.
“Prior to 1975, the Madang hotels had the power to collect a direct five per cent bed tax paid directly to the Madang visitors and cultural bureau (MVCB). After the provincial reforms, this power was taken away and all taxes collected by Internal Revenue Commission, with an understanding that MVCB would receive no less from the provincial government that they had previously, this simply did not happen and the MVCB has remained in debt ever since,” Sir Peter said.