Tax Revenue to reach K3.2 Billion in 2018

BY GORETHY KENNETH

The new revenue strategy, major tax head contributions to revenue are expected to increase above 2017 levels with personal income tax collections expected to reach K3.2 billion in 2018.

It is expected that company tax will reach K1.9 billion; mining and petroleum tax K179 million, gaming machine tax K174.4 million; dividend withholding tax K137.4 million and interest withholding tax K84.2 million.

For the indirect taxes, GST is expected to reach K1.9 billion, excise cuty K782.3 million, import excise K395.1 million, export tax K330 million and import duties K296.1 million.

Non-tax revenues are expected to be substantially higher comprising fees and charges which are expected to reach K175.2 million. Dividends from state owned enterprises and mining and petroleum projects which are expected to reach K1.3 billion.

The dividends are expected from National Fisheries Authority K400 million, Kumul Petroleum Holding Limited K300 million, Ok Tedi K200 million, Bank of PNG K150 million, Kumul Consolidated Holdings K100 million, National Gaming Control Board K75 million and Motor Vehicle Insurance Limited K25 million.

In addition to this, the newly introduced 90:10 Statutory Transfer rule will generate an additional K565 million comprising one off receipts from the National Fisheries Authority of K400 million, National Gaming Control Board K75 million, Kumul Consolidated Holding K40 million, Mineral Resource Authority K30 million, National Maritime Safety Authority K10 million and the Conservation and Environment Protection Authority K10 million

Grants from donor agencies are expected to total K1024.6 million in 2018. Donor grants are subjected to movements in the exchange rates and policies of donors.

Revenue excluding grants as a percentage of GDP has declined over the years from around 20 per cent in 2012 to 13 per cent in 2017.

The 2018 Total Revenue and Grants Budget is projected at K12,730.7 million, an increase of K1751.5 million or 16.0 per cent, compared to the 2017 Supplementary Budget estimates. A number of the revenue increases are one off in nature and these will be utilised to fund adjustment costs such as clearing outstanding arrears and funding one-off expenditure categories such as APEC.


https://postcourier.com.pg/revenue-tax-expected-reach-k3-2-bil-2018/

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