Govt to clamp down on tax-evading firms: Abel
SOME firms in the resource sector are avoiding paying tax to the Government, says Deputy Prime Minister and Treasurer Charles Abel, pictured.
Announcing the 100-day 25-point plan on Friday, he said the government would clamp down on these firms.
Abel also said the taxation system was too “complicated” for the people to understand.
He said government revenue was decreasing.
“With this complicated taxation system and the concessions that we are giving, our mineral and petroleum taxes are falling to almost zero,” he said.
“There is gas, gold and oil leaving our shores,” he said.
“There’s record amounts of unprocessed round logs and tuna leaving Papua New Guinea.
“I need to know why revenue is shrinking and these things are happening.
“I need to know why I’m not processing my oil and gas, producing cheaper, reliable, clean energy to the people of PNG using their own resources.
“What is going on with this fiscal regime that is not encouraging these things to happen in a faster manner?”
Abel met IMF and World Bank officials last Friday “to help us create a medium-term revenue strategy”.
“I’ll be driving that programme, and on top of that policy, I want a simpler tax system for everybody,” he said.
“We are not going to impose any more tax on anybody. But there are firms and individuals who just have been beating the system.”
Abel said Prime Minister Peter O’Neill had instructed that there would be no additional taxes imposed on people
“We want a fairer and simpler system.
“We want to make sure that we collect taxes owed to the government so that we can provide the services (people) need,” he said.