Provinces not benefiting much from GST share

National, Normal
Source:

The National, Friday July 11th, 2014

 PROVINCES are still not benefiting from the Goods and Services Tax (GST) collected by the Internal Revenue Commission from consumer goods and other items, West New Britain provincial administrator Williamson Hosea says.

He said at the opening of the National Economic Fiscal Commission workshop for the Islands region in Kimbe that there were only few benefits derived from such tax collected from consumers.

Hosea said that was one of the impediments to the delivery of goods and services in provinces throughout the country.

He said there should be a provision to make traders of “killer goods” to pay more taxes to the provincial governments.

Hosea said this is one way to contain the problems caused by destructive goods sold to the consumers.

He said WNBPG only collects K1 million from liquor licence fees per year compared to the cost of maintaining law and order, which surpasses the K1 million to cover the cost of policing, allowance, transport and fuel.

“Our problem is – where do we get the extra K1 million required to fund the cost of policing, allowance, fuel and transport? 

The simple answer is to fork out funds from the budgeted items, which have been determined according to the five year Development Plan (IPDP) and the Corporate Plan,” he said.

“These are intended for the welfare and empowerment of the people.”