Taxes killing low-income earners, says former PM O’Neill

FORMER prime minister and Ialibu-Pangia MP Peter O’Neill has again blasted the Government for turning a blind eye on the hefty income taxes that are driving low-income earners further into poverty.
O’Neill said the country’s tax office, the Internal Revenue Commission (IRC), is making a killing on collecting taxes from the nation’s majority of low-income earners but, at the same time, without due consideration for the declining standard of living.
He said the tax threshold which the Government has increased to K20,000 ought to have gone higher.
“I am disappointed that they did not adjust taxes for low-income earners; low-income earners who earn around K30,000 to K40,000 a year should not be taxed. We do that so we can relief some of their pressures and allow them to buy their food and other necessities,” O’Neill said.
O’Neill made these remarks during a live broadcast show on his Facebook page on Sunday.
While applauding the IRC for collecting taxes from the country’s working class, the former prime minister also warned the tax office not to collect too much from the small people because the standard of living was declining.
Claiming that with the Government’s huge spending record against saving, and an increasing loan interest, O’Neill said the Government would not deliver on its promised balance budget by 2027.
Referring to the IRC tax collection efforts, he said the Government could use those monies to balance the budget instead of going out to borrow.
“For a country such as PNG where many people do not earn much, a loan by the Government will create a huge burden for everyone.”
The former prime minister also called on the Government to seriously attend to the task of strengthening the fast-devaluating Kina, “which is greatly affecting our people’s buying power”.
He also described the 2024 National Budget as “reckless”.
“In my view, this budget is not a good one and it does not make any attempt whatsoever to address some of the major challenges that we are facing in the country, including the huge taxes,” O’Neill said.
He said these challenges included the stagnated growth of businesses, lack of job opportunities and no clear agenda for the development of key industries such as agriculture, fisheries and tourism.
“In fact, in this budget, there was absolutely no mention of the tourism sector; it failed to highlight any plans the government may have to address law and order issues and the declining services in both health and education.”