K12.4m for new Customs Services

THE Internal Revenue Commission (IRC) will next year face an additional task to its normal one of collecting enough revenue to meet Government money plans.
Next year, the Customs division will be separated from the IRC to operate as a separate Government revenue collection agency.
The new PNG Customs Services has been allocated K12.4 million in the 2010 Budget to get its house in order.
For a time, however, it will continue to remain under IRC until the separation is final.
Internal Revenue Commissioner Betty Palaso said during the transition period, the IRC would continue to provide payroll, budget and information technology support.
This happens at a time when the IRC will be required to provide almost 70% of the national budget next year.
Tax revenue was estimated at K5.7353 billion next year compared with K4.8286 billion in the revised 2009 budget.
This is the result of high mining and petroleum tax and stronger personal and company taxes from increased economic activity and business profitability.
Tax on income and profits will comprise the bulk with K4.0297 billion compared with K3.3394 billion in 2009.
Tax on domestic goods and services is expected to net K1.2589 billion (K1.1024 billion in 2009) and on international trade will net K4.467 billion (K3.868 billion).
The increase is expected from increased economic activity and international trade.
Ms Palaso said the changes at IRC would not impact revenue collections this year or next year but that the IRC had received lower than anticipated budget allocations this year.