IRC ended 2018 with K8bil deposit to WPA

By CLARISSA MOI
The Internal Revenue Commission (IRC) collected and transferred K8 billion to the Waigani Public Account (WPA) at the end of 2018, exceeding its budget target of K7.9 billion.
Commissioner of tax Alois Daton said the total figure was 8.4 per cent higher than Government projections at the time of 2018 budget.
It was 5.2 per cent higher than Government’s revised projections in the mid-year economic fiscal outlook (MYEFO) and they had met both targets.
“In terms of corporate income tax, we brought in K1.7 billion and that is 8 per cent above 2017 collections,” Daton said.
“In relation to salary and wages tax, we brought in K3.8 billion, which is three per cent above 2017 collections.
“There was a big turnaround for the mining and petroleum taxes.
“Because of the level of oil prices going up, we were able to collect K774 million against the K113 million collection in 2017.
“That’s about 582 per cent increase over the 2017 collections.”
Daton said partnerships and personal income tax fell by 34 per cent, while foreign contractor withholding tax also fell by 18 per cent – indicating reduced use of foreign services.
He said there has been strong growth rates in other forms of income.
“In dividend withholding tax, there was a 12 per cent increase over the 2017 collections,” Daton said.
“We did well with interest withholding tax with a 25 per cent increase over the 2017 collections.
“There was a 25 per cent increase with royal withholding tax.
“Stamp duty collections increased by 125 per cent over 2017, registering higher transactions in assets.”
Daton said there was also a massive increase in departure tax due to the country hosting Apec last year.
Departure tax is paid by international travellers.
Apec-related travels pushed the departure tax up to almost double the amount collected in 2017.
“Tax collections were also higher for bookmakers and gaming companies, indicating higher disposable incomes among the public in 2018,” Daton said.
He said that increase in gaming and bookmakers showed there was a lot of disposable income.
“Negative growth was recorded in management fee withholding tax, training levy and other sundry IRC receipts,” Daton said.
In consumption taxes, inland goods and services tax (GST) in the provinces brought in 3.2 per cent revenue over the 2017 collections.