IRC contributes K9.2b in tax revenue

BY GORETHY KENNETH

THE Internal Revenue Commission has contributed about K9.2 billion in tax revenue to the national coffers in the 2017 National Budget.

And this tax collection, contributing to PNG’s 2017 Budget of K13 billion is then used by the Government to fund basic services throughout the country.

A lot of complaints have surfaced recently questioning why the Government collects the 10 per cent GST on all goods and services.

No official comments have been received from authorities on the latter as none were available yesterday when contacted.

irc2009_06

But references have been made from Treasury Minister Patrick Pruaitch’s 2017 National Budget speech delivered during the Budget Lockup and in Parliament in November.

“The 2017 Budget is set at K12,965.4 million against a revenue envelope of K11,088.8 million. This comprises K9182.2 million in tax revenue, K1045.3 million in grants and K1245.7 million from other sources of revenue,” Mr Pruatich said.

“…funding is carefully planned to accommodate for high priority expenditure projects that will continue to promote broad based economic growth and adjusting Governments debt to GDP ratio to return to a balanced budget in 2021.

“The 2017 Budget contains significant taxation measures to support the government’s efforts towards a gradual fiscal consolidation path to maintain macroeconomic stability, support continued economic growth and employment through improved, broadened and strong revenue base.

These measures will raise Government revenue by K620 million in 2017.”

He talks about increased benefits from unprocessed logs through a progressive export duty, increased alcohol and tobacco excise, increasing the taxable component of employer provided housing benefit, and revamped additional profits tax.

Leave a Reply