Tax threshold to be increased for low-income earners

REFORMS are taking place at the Internal Revenue Commission in line with the Government’s medium-term revenue strategy, according to acting commissioner-general Dr Alois Daton.
Included is the raising of the tax threshold from K10,000 to K12,000 for low income earners.
Daton is taking up the post from Monday following the departure of commissioner Betty Palaso to take up a diplomatic posting overseas.
He said among the reforms was the increasing of the tax threshold.
“We’ve already started the major reforms in three phases – policy, legislation and tax administration.
“There is proposal for the threshold to increase from K10,000 to K12,000 for low income-earners. These are the policy reforms being considered out of Treasury.
“The legislative reforms are when we make changes in the laws so we are putting in place a tax administration. We taking out all the administrative provisions from the income tax itself and putting it separate and simplifying the tax law.”
He said once the tax law was simplified, it would be easier for taxpayers to understand it.
“Right now it’s complicated because we adopted it from Australia. The language itself is difficult. We want to simplify it so we make it easier for PNG so small business people understand the law,” he said.
Daton said with the introduction of information and communications technology, businesses would do their own tax assessments. The IRC only does the data entry.