Income tax laws to be submitted

THE Constitutional and Law Reform Commission (CLRC) is submitting a draft review and report
on income tax laws to the Government.
“The report, with its findings and recommendations, was accepted by relevant stakeholders from the public and private sectors at a seminar in Port Moresby last Friday,” CLRC secretary Dr Mage Matui said.
“The report contains specific emphasis on personal income tax,” he said, adding that the aim was to adopt the best tax regime for Papua New Guineans.
“The seminar also provided an opportunity for the key stakeholders to provide their final input and position on the recommendations before the report is finalised and submitted to the Government later this year.
“The dilemma is to strike the balance between relieving the workers and ensuring the Government continues to generate revenue to provide goods and services to the people.”
A total of eight recommendations in legal, policy and administrative, and socio-economics were proposed based on the findings from the research and consultations conducted nationwide in 2021 after the review was launched.
The recommendations provided solutions to the key issues on whether to scrap or reduce personal income tax which is the highest in the world.
“We also considered tax incentives, application of personal income tax in the informal sector, tax-free superannuation and retirement benefits, and other associated issues,”Matui said.
“The recommendations also complement efforts by other relevant agencies concerning personal income tax.”
CLRC commissioner Martha Kokiva said while the report also considered the Government’s interest and reliance on revenue from personal income tax, she hoped the Government would seriously consider and implement the report.
“Laws and policies are enacted to ensure the citizens’ welfare is prioritised and if the current tax regime on personal income tax is contrary to the national goals and the Vision 2050,” she added.