Taxes not being paid: MP

The National Main Stories

By PETER ESILA
FINANCE Minister Sir John Pundari says a lot of businesses are not paying their fair share of goods and services tax (GST).
Sir John, during the launch of the goods and services tax section 65A in the information financial management system in Port Moresby yesterday, said that GST could be the number one revenue earner which the entire population was supposed to contribute.
He said the GST rate could be increased to 15 per cent once leakages were identified.
“I strongly believe that if we collect all the GST that we have to collect with the present rate of 10 per cent, we can make enough money to consider even reducing the high rate of salary/wage taxes,” he said.
“I agree and fully support Internal Revenue Commission’s efforts in taking ownership of the existing size of the pie and making GST the number one revenue earner.
“We want everyone in this country to participate in financing the development of this country and the effective way of getting that done is through the effective collection of a tax type that everyone participates in. GST is that tax type.
“The continued resurgence and spread of the Covid-19 are provoking us to explore ways to weather the economic storms.
“The Covid-19 may be slowing us down but it must not stop us from progressing forward.
“We need to explore smarter and measured approaches to continue to make progress despite the challenges.”

3 comments

  • Itotally agree with Minister John Pundari. I strongly believe that if all companies operating as business in the country pay their fair share the country will have enough funds sustain its economy.
    IRC must screen all existing organisations and companies doing business in PNG, especially the retail shops popping up as mushrooms throughout the country even to the very remote centres. Are these shops registered under IPA to carry out their business? Please find out and if not then deal with them appropriately.

  • INCREASE TO 15%? How are you planning to mitigate the current inflatation?

    If the MPs pay their fare share of tax just like us ordinary people should balance out to feel.

    Every action should be both in balance rather then one way increasing. Increase wages and salary threshold too?

  • Increasing GST rate to 15% is not the solution. Increase IRCs capacity to go out and collect tax. What we have now is a “voluntary collection system” whereby taxpayers voluntarily pay tax, hence alot of non compliance. Start going after non tax payers and start doing tax audits, they will pay their dues.

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