Taxes not about putting people out of business, says Koim

THE Internal Revenue Commission (IRC) is not about putting people out of business, says acting commissioner general Sam Koim.
Koim made the comments while speaking at the Start-Up PNG 2019 convention yesterday.
He said the role of the IRC was to generate revenue that was owed to the government as part of the social contract between businesses and the state.
“Individuals who do business need roads, bridges, security, hospitals and all these services to be available to provide an enabling environment for business,” Koim said.
“If the government doesn’t tax you, then you have to provide for your own roads, your own electricity and everything that will make life easier for you to generate your revenue.
“It’s on that basis that government gets a share of what you produce in taxes and then to provide those services which is the principal of the social contract.
“Everybody who uses government services has to pay fair share of tax.
“A lot of our tax laws are based on self-assessment and how much tax you can give back to the government.
“You must be honest and that’s how the tax laws are arranged.
“We expect individual tax payers to come to the office and do the right thing. There are many who do not understand our tax laws.”
Koim said people were complaining about the rise in taxes but the reality was that the country needed taxes for the good of the economy.