WAGES and salaries income taxing is killing the working class of Papua New Guinea.
The government in the recent years has tasked a team of high calibre committee of professionals headed Sir Nagora Bogan who came up with a new tax system in the country but to no avail it has not implemented as yet.
The current system of taxing with regards to wages and salaries is getting hold of a good amount of income from the working class.
The current tax rates and tables with regards to wages and salaries need to be reduced to encourage quality workforce in all formal workforce.
The gross salary of working people may be looking good but the problem is with the tax taking hold of a good portion of income taken out from the pay.
Like for example, look at the accumulated tax and supper fund deductions, the tax deducted are much higher than the supper deductions.
Probably when the accumulated tax is K3,000-plus, the super deductions may be around K600 to K700.
So, this is how the income tax is reaping off the working class in this country with more tax portion of it from income to government and less is saved in the super fund schemes.
The productivity and the quality of life of working class really depends on the amount of net income that one receives.
Most of the time the tax is consuming a good portion of the income of any employee in this country.
The is something that the government of the day has to think seriously about it and give a relief to this tireless tax paying formal workforce of this country.
The taxing system on wages and salaries is causing a lot of pain to the working class in this country.
The government has to look into reducing the wages and salaries income tax component of the formally employed working class.
The working class already tired of continuing paying tax over so many years of their working life.
There is no fair play in this respect and tax relief is of agency to the formal working class in PNG.
There a lot of people out there actively involving in some form of income generating activities outside of the formal establishments but tax is not paid to the government in most or all cases.
And that is why it is not fair for the same working class continuing paying tax to the government fortnight after fortnight, month after month and year after year.
There is no fair play in this sort of tax system in this country.
And it is grave concern for the government to have a look at the recent revised tax system submission to the National Executive Council some one or two years back and see how best to relief the working class who are silent and subject to tax compliance.
Tax Slave, Via email