NCD tax row

By LUKE KAMA
PRIME Minister Peter O’Neill has directed Treasurer Charles Abel and the Treasury Department to investigate how Goods and Service Tax collected in the National Capital District are being distributed.
The 10 per cent tax, according to legislation passed in Parliament in 2003, should be distributed to the Central provincial government (five per cent), Gulf government (three per cent), and the Motu Koitabu Assembly (two per cent).
But Gulf Governor Chris Havieta told Parliament that his province had not received a single toea since the legislation was passed.
“The law was passed by Parliament in 2003 that of the 10 percent of GST collected in NCD, five per cent would be given to the Central provincial government, three per cent to the Gulf provincial government and two per cent to the Motu Koitabu Assembly,” Haiveta said.
“Our request (to the NCD governors and administration) have fallen on deaf ears up to date.”
NCD Governor Powes Parkop tried to stop Haiveta from questioning the distribution of the tax.
O’Neill said he was aware that the legislation passed by Parliament required the distribution of the GST collected to Gulf, Central and the Motu Koitabu assembly.
He therefore directed Treasurer and Deputy Prime Minister Charles Abel and the Treasury Department to look into how the GST was being distributed by the National Capital District Commission.
“The Treasurer will not do an audit. The reports are there as the Internal Revenue Commission collects the GST and distributes that to NCD. It’s quite easy to access that,” O’Neill said.
“I will direct the Treasurer and the Treasury Department to facilitate that.”
O’Neil also undertook to coordinate a meeting between the governors of the NCD, Central and Gulf, and the chairman of the Motu Koitabu Assembly to resolve the matter.