Madang tax income sees major drop


MADANG’S internal revenue from the goods and services tax dropped by more than half – from K12 million to K5 million this year because of the slowdown in economic activities and the drop in commodity prices.
Internal Revenue Commission commissioner-general Betty Palaso, was responding to provincial administration’s  chief revenue officer Thomas Neruse who said that three years ago, Madang was earning up to K12 million in GST. It dropped to K5 million this year.
Palaso said the drop was because of the low commodity prices and slowdown in economic activities in 2015.
“The way the revenue is done  is that whatever provinces get this year would be based on whatever collected two years ago,” she said.
“The 2017 revenue collection was based on what was collected in 2015.
“That was when we were hit by a drop in commodity price and there was a slowdown in economic activity.”
She said taxpayers must indicate clearly the amount of tax return collected which would determine the amount a province received.
“That is why we try to encourage taxpayers and tax agents like accountants to make sure they clearly indicate how much is generated in a province,” Palaso said.
She said in that way, the correct amount of GST would be sent to that province.
Palaso was in Madang last week to sign an agreement with the Madang provincial administration.
It will encourage tax compliance to improve revenue for the province.