‘Personal income tax contributes more to budget’

The 2019 Budget gets more money from personal income taxes than mining and petroleum taxes, according to the PNG Trade Union Congress.
Reports from the Department of Treasury show that mining and petroleum taxes (MIT) made up only K428 million whilst workers’ personal income tax (PIT) added to K2.95 billion.
This is irking PNGTUC general-secretary, Clemence Kanau, who said the Government should be chasing these mining and petroleum companies for taxes than milking ordinary Papua New Guineans dry.
“The Government should focus on increasing revenue through proper taxing of multi-national corporations and companies, rather than granting them tax holidays and adding more burden on the citizens.
“Tax burden in PNG is placed more on the general workforce than on corporations, whilst those corporations gain a lot from our land and resources.”
PIT remains the highest category in tax revenue with 27.35 per cent. Other companies will pay company income tax (CIT) at a total of K2.56 billion (23.7 per cent) which is the second highest category, whilst MIT makes up only 3.97 per cent.
Treasury reports show that PIT actually decreased from K3.05 billion (30.64 per cent) last year to K2.95 billion (27.35 per cent), and MIT has increased from K362 million (3.28 per cent) last year to K428 million (3.97 per cent).
CIT has also increased from K1.99 billion (20 per cent) last year to K2.56 billion (23.7 per cent). Despite the change, PNGTUC maintained that prices of goods and services were increasing and goods and services tax would also increase proportionally. This will have an adverse effect on workers as they remain the highest contributors to tax revenue.
“Only 23 per cent of the total 8.5 million people in PNG are contributing to the highest tax revenue through PIT, compared to other tax payers so the Government needs to reconsider its options and reduce the burden placed on them,” PNGTUC deputy secretary-general Anton Sakum said.