Tarutia: Tax plan volatile

By DALE LUMA
THE new taxation arrangement for Bougainville needs to be carefully considered as it has ramifications, says National Superannuation Fund chief executive officer Ian Tarutia.
As one of nine resolutions passed during the Joint Supervisory Body (JSB) meeting in Arawa on Feb 5, the Autonomous Bougainville Government (ABG) will receive 70 per cent of the tax collected in the region. It previously collected only 30 per cent while the PNG Government collected 70 per cent.
Tarutia told The National this when responding to queries that other provinces might seek the same arrangement.
“This is a policy decision that must be considered carefully as it has ramifications,” he said.
“Other provinces, especially in the greater NGI and Enga for example, may seek similar concessions.
“It comes back to how much of the fiscal envelope the Government is willing to give provinces that demonstrate progress.”
Prime Minister James Marape welcomes the new Bougainville tax arrangement.
“I am satisfied with this arrangement,” he said.
“It is complementary to my view that when you want to decentralise and empower a sub-national government or a specific region, in this case Bougainville, you must also endure revenue-raising mechanisms so that they are empowered.”
Marape said the 30 per cent PNG received would be for national budget purposes.
He said the shares collected by the ABG will be kept in Bougainville to carry out service delivery to the people.