LLGs can impose own taxes: Adviser

LOCAL level governments in the 89 districts of the country can generate revenue by imposing taxes locally to manage their affairs, says Morobe provincial and LLG affairs programme adviser Roy Naiab.
He said LLGs could impose tax in wards on businesses such as wholesale, trading stores, fuel sales, liquor sales and marketing.
Naiab said an LLG could also create a business arm to sustain its operations.
“Yes, it is possible for LLGs to impose taxes on businesses and head tax, and the LLGs can create their own business arms to generate revenue,” he said.
“If LLGs did that, they would prosper instead of having to wait for national and provincial government grants.”
Naiab said imposing business and head tax in LLGs was possible only when the Morobe Tutumang (provincial assembly) identified specific businesses and head taxes stipulated in the Organic Law on Provincial and Local Level Government (OLPLLG).
He said a law would have to be drafted to guide and enforce that tax.
Naiab said the draft law would then be submitted to the attorney-general for approval.