IRC: 262,000 workers pay tax


THE Internal Revenue Commission says 262,000 salaried workers, out of the country’s eight million-plus population, paid tax to the Government in the past financial year.
Commissioner of Tax Dr Alois Daton said of that number, between 60,000 and 70,000 taxpayers were employed in the public sector.
He revealed the figures to The National when queried on the number of salaried workers actually paying taxes to the Government.
The commission also expects to collect at least K8.6billion this year which will paid to the Waigani Public Accounts before the end of the year.
“The IRC has a number of programmes including field visits and use of third-party data to bring businesses into the formal sector to ensure they meet their obligations to pay tax,” Daton said.
“People and businesses engaged in the informal sector do pay tax to the government mainly through GST (goods and services tax), Business Payments Tax – if they are engaged in industries which attract this tax such as the construction industry, stamp duty through the buying and selling of shares, properties etc.
“The IRC collects GST from businesses in all provinces as well as GST from the ports collected and transferred to the IRC by PNG Customs.
“Of the total GST collections, refunds are processed and paid out first. Then, 60 per cent of the balance is paid to the provinces. The net of refunds and distribution to provinces is then transferred to the Waigani Public Account.”
He said the GST rate remained unchanged at 10 per cent.