PNG’s revenue generation is low, says O’Neill

PRIME Minister Peter O’Neill, pictured, says the country’s revenue generation is low.
O’Neill told a business breakfast meeting in Port Moresby on Wednesday that there were businesses not paying their fair share of tax.
“There has been talks about taxation reforms. In our term, we have tried to set up a team to look at the taxation regime so that they can give us advice on how we can progress some of the reforms that we are all wanting in this sector,” he said.
“Unfortunately, they were not completed in the manner in which we are happy with.
“I think the manner in which we manage taxation system in our country is something that this government is focused on.
“Revenue collection is much lower.
“There are a number of businesses that are not paying their fair share of taxes.
“We are not asking people and businesses to pay more tax.
“We are asking the whole lot of us to pay our fair share and that is something that we are willing to work towards as a Government.
“It is fair to say that some of the tax rates that are being imposed on businesses and individuals are and especially families are too high.”
O’Neill said the Government was looking at reducing the tax rates.
“Our Government is now in the process of reassessing that with the desire of reducing those rates in a sustainable but gradual manner over the next few years,” he said.
“That will begin of course in the next financial calendar year.
“We must make sure that our taxation system is well suited for small to medium enterprises in the country.
“And of course compliance has sometimes been complicated and costly for small businesses.
“Our aim is to try and make it easier.”