PM: Goods, services tax to remain at 10 per cent

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By SAMUEL BARIASI
PRIME Minister James Marape says the Goods and Services Tax (GST) could be adjusted when the economy improves, but for now, it will remain at 10 per cent.
“As our economy improves in future, we can look at giving incentives to our people or reducing tax.
“Right now our economic threshold hasn’t improved therefore we need to work to improve it,” he said.
Lagaip-Porgera MP Tomait Kapili in Parliament yesterday said the Government was double-taxing workers through GST and income tax.
“Workers are being double-taxed because they are already paying income tax. The double tax part (GST) is what we can remove,” he said.
But Marape said taxation was important as a source of government revenue.
“At this point in time there will be no discussion on giving concession or wavering GST to the public service employees or any other worker in the country. That is state revenue,” he said.
“If any public servant feels like that this is a burden on them, they have every right to step out of public service and not pay the double tax.”
He said it would be unwise for the Government to remove the GST component.
“We will be slashing substantial revenue for the state,” Marape said.
“When our economy improves, (we may adjust tax) to lessen the burden on our workers. Our economy does not have the luxury of financial space to have those discussions now.
“GST in my view is the fairest way in which everyone who is accessing goods and services pay for that access.”

4 comments

  • This is a very irresponsible response from the PM say that if you feel burdened step out of the public service.
    What the good MP is pointing out is that public servants are double taxed.

  • As the Prime Minister of the Independent State of Papua New Guinea he should have responded like we can look for ways to minimizing Double tax. Either by reducing Income tax or GST. If the parent are to pay Tuition Fees and yet the poor parents are burdened with double tax. Working class is now becoming the slaves of the Mps to enjoy luxury.

  • Should increase GST to 30% and reduce Personal/SWT tax by 20%. We should be tax based on our consumption not based on earnings. That way Govt would motivate people to work hard and increase their earnings and will still spend more or they can save by cutting down on consumption of imported items esp.

  • PM is not telling you to step out of your job, but you think its a burden then you step out of your job and remain in your nut shell and pay for goods & services. Paraphrase the system and see the ecosystem built in it. Where do we get the medical help, school infrastructure and salaries for teachers to teach our children, roads & bridges and lists goes on. Your tax deduction goes on and comes around in different format to help you and other fellow citizen. Please be realistic in our comments. If the government forgo the personal income tax then where would we get the reserve to meet the missing link. Please lets have some management skills.

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