I WRITE in reference to the Prime Minister James Marape’s statement in last Friday’s The National regarding personal income tax.
He said the Government cannot reduce personal income tax.
Yes, it is true that taxes are needed to fund government expenditure in carrying out functions such as the delivery of basic services and development of public infrastructure.
We hear a lot about why tax collection is justified, however, taxes need to be justified through their use.
Personal income taxes should not limit the ability of workers to save and build capital, which encourages investment and in turn leads to future income and economic productivity.
What is the point of workers paying large amounts in taxes fortnightly when they struggle to pay for basic living expenses, save little, if at all, and resort to borrowing money to get them to the next fortnight?
Taxes should not exceed what is needed to fund Government expenditure of public needs.
This means taxes should only be used for service delivery and these services should be administered efficiently and be cost-effective.
Why are workers paying such high taxes yet benefit so little from the failing public education and health services, poor infrastructure and failing law and order system that their hard-earned monies are supposed to fund?
Under no circumstance is excessive taxation to fund excessive Government expenditure justifiable.
We, the hardworking Papua New Guineans, are tired of bearing the burden of taxes with so little to show for except for the frivolous money-pocketing scams ministers disguise as special projects.
Marape and the government should review its budgeted expenditure and cut out wasteful spending, otherwise, the tax use is not justified and the Government should reduce the tax burden shouldered by PNG workers.
Ensisi Tax Payer