Tax reduction not yet implemented

PRIME Minister James Marape revealed yesterday that agencies implementing a 10 per cent reduction of goods and services tax (GST) from essential items have not yet done so.
“Those agencies who were supposed to ensure the 10 per cent GST levy on fuel and essential food items are removed, have not implemented that fully as yet because of the mechanisms to operationalise the policy intent of the supplementary budget,” he told Parliament.
“Many times in our policing of those key incentives they don’t pass on the benefits to our people and we have worked with the Independent Consumer and Competition Commission on how the price relief can benefit the people directly,” he added.
He made the comments in response to questions and suggestions raised by Abau MP Sir Puka Temu about the rising costs of living in the country.
Sir Puka noted that K283.3 million was provided as a buffer in the supplementary budget to help families because of the high cost of living, but felt that the Government should re-look at that strategy and instead reduce the non-tax fees, levies and charges.
“If the Government has parked K283.3 million to provide support to consumers, the Government should instead consider reducing fees and charges on non-tax levies, which would benefit more than 100,000 of the low wage income earners.
He noted that K600 million was collected from fossil fuel levies, verified gross mass levies, wharf storage fees, international shipping and port security charges, commodity crop research and extension levies, cocoa tonnage levies, fertiliser levies, airport fuel levies, factory licence fees, safety and inflammable liquid inspection fees to name a few.
He noted that these were a lot of fees, charges and levies placed on the people and pointed out that each fiscal year and suggested reducing these fees instead.
“We are being sensitive to the high cost of living and the suggestion made by Temu is a right one, but we’re finding the balance where those who are implementing these policy mechanisms are passing on the benefits to the customers,” Marape said.
As a government, they have looked into what areas have a least burden on balancing the impact of earning revenue while at the same time sustaining consumer needs, he noted.
He pointed out that the Treasury team would be looking at different combinations so that people could be supported throughout these tough times.