WE are yet to confirm this as we will lodge training levy tax returns for 2018 this June.
But personally this is really disappointing by removing the training levy and double income tax deduction for training
The training levy applies to businesses with payroll over K200,000 per annum.
While this is at 2 per cent of payroll, it is reduced by the amount of eligible expenditure on national staff.
The training levy requires a separate training levy return be lodged with the IRC.
Because of this tax levy provision, many companies utilised it to train their national employees despite the cost saving measures and high profit earnings each businesses have.
Actually, some of us did not realise this important tax law removed until now when we are in preparation for the 2018 income tax returns. It was removed in January 2018.
This is a harsh decision by the government and its tax advisers, killing us the national employees of this country for our upskilling.
On the flipside, the double deduction allowed in calculating taxable income for eligible training expenditure was also been removed from Jan 1 last year.
The government considers that in the modern commercial environment companies already have an incentive to upskill and train employees.
Again this is another unfair decision by the government.
It’s the law that makes them train and not because of their own choice.
Nobody wants to throw money here and there.
What is the next alternative? That government directs all businesshouses to train citizens if they want to strip off this tax provision?
Otherwise, the government should require job training for every new recruit of PNG citizen for a year, and pay the fees for those who want to do further training at colleges and universities.
Not one company is willing to spend on employees apart from salaries and wages, if this tax law is not there.