Tag Archives: Government

Pom Gen to Receive K100 million

Source: PC Online

THE Port Moresby General Hospital will receive K100 million of the K1.5 billion health sector allocation in the 2018 national budget, Health and HIV/AIDS Minister Sir Puka Temu says.

Sir Puka said they had been allocated 100 per cent funding but the challenge was how to implement the budget.

“I’ve been in this hospital most of my life and I’ve seen transformation under the new board. The highest institution in healthcare is the hospital,” he said.

“This is to bring the private sector skill, experience and acumen into the public sector. The things they lack are because of the Budget issues.

“I was health secretary before and I would beg the government to fund our health plan below 60 per cent. It’s now 100 per cent funding.”

Sir Puka said the key word was partnership and he urged the communities to help the management of the hospitals by doing their part.

“Don’t throw rubbish everywhere. Listen to security guards,” he said.

“Visit patients on time with one guardian. Doctor-patient relationship must be improved. Prescription practices must be good and patients must complete their doses to avoid drug resistance.”

Pm: Do Not Pre-Empt Manumanu Inquiry Outcome

Prime Minister Peter O’Neill has called on all interested parties in the administrative inquiry into the Manumanu land deal to remain patient and not seek to pre-empt the outcomes of the inquiry.

“I have seen public comment in the media on the administrative inquiry into the Manumanu land deal,” Mr O’Neill said in a statement yesterday.

He said the final report had not been presented to the Government.

“When the final report has been presented to the Government it will be released to the public and prepared for tabling in the National Parliament.

“All interested parties need to remain patient and not seek to pre-empt the outcomes of the inquiry.

“This is a serious matter and the outcome will be finalised in an appropriate timeframe.

“Due process is essential and this must be respected,” Mr O’Neill said

The Prime Minister was responding to calls for him to release the findings of the administrative inquiry into the Manumanu land deal in Central Province.

Transparency International PNG (TIPNG) chairman Lawrence Stephens renewed his call for Mr O’Neill to table in Parliament the administrative inquiries findings.

School Contractors Warned! – O’Neill

**** PM O’Neill: Contractors to be Held Accountable as More Schools and Classrooms Built Around Papua New Guinea ****

4th December 2017

 

With more schools and classrooms being built around the Nation, contractors will be held accountable for every Toea in public funds they are given for construction.

That is the clear message delivered by the Prime Minister, Hon. Peter O’Neill CMG MP, when opening a new classroom building in in Kimbe, West New Britain Province.

“Continuing to improve education is our government’s commitment to our future generations.

“Better education provides the greatest hope for our children, particularly in remote and rural areas.

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“In 2018 we have allocated 1.29 billion Kina for the Education Sector, which is nearly nine per cent of National Budget. This is an increase of 13 per cent from the 2017 Supplementary Budget.

“We have placed more than an additional one million students in school over the past five years, and now we are applying additional focus on improving the quality of education.

“Now we are building more schools and classrooms right around the country.”

The Prime Minister issued a stern warning to all companies involved in the construction of school projects, that public money will be fully accounted for and documented.

“Many times the Government has given contracts to certain contractors who fail to complete their jobs and run off with payments.

“This must stop and we are looking back at previous contracts to identify any irregularities for further investigation.

 

“It is vital for our children to have proper buildings to learn, and any time there is fraud this deprives our children of their right to education.

“We also have seen a number of builders that have delivered high-quality school buildings, and their commitment and accountability is helping us to advance the Nation.”

In opening the new classroom building at the Waisisi Primary School in the Talasea District, West New Britain Province, PM O’Neill congratulated all who had worked on the project.

“As I officially open this newly built classroom building, today, I thank the school board and the builders for doing an outstanding job.”

The Prime Minister further noted the growth that was occurring in the Talasea District and said the Government has met with the Boundaries Committee and have decided that Talasea District will soon become two districts, given it’s vast population and land boundaries.

Government Clamps down on Corporate Veil – Corporate Firms pays more Taxes

A look into 2018 National Budget

1st December 2017

Currently, a “corporate veil” exists which does not allow the CG to collect the income tax from the company’s holding company or related companies even if it has been distributed as a dividend or transferred as a non-monetary asset to those group holding companies.

In this Budget, the Government will remove the “corporate veil” to make the parent (holding) company and other groups of companies liable for the tax liability incurred by the subsidiary company. This will allow the CG to collect tax distributed as dividends or transferred as a non- monetary asset to other Group companies in PNG or overseas.

This measure will be revenue positive in the medium to long term and is expected to be effective 1st January 2018.

There are cases where large corporations’ profits generated from business operations in PNG pay little or no income tax with profits paid over to its holding companies largely as dividend payments. The paying of the company’s cash as dividends in conjunction with the reduction in the company’s non-cash assets leaves the IRC unable to collect any outstanding tax liabilities from the company.

These large corporations may have a large tax liability and be stripped of all assets leaving the Commissioner General (CG) unable to collect income tax assessed to the company.

NO NEW TAXES – Tax Payers Delight

30th November 2017

 

The handing down of the National Budget 2018 drew a sigh of relief for averages citizens in the country. For the first time in many years, there was NO NEW TAXES in the budget.

 

The Government has however decided to ensure that the Internal Revenue Commission goes out and does what it is required to do, COLLECT TAXES!

 

The Tax Collection has been lacking in the Commission for many years piling the pressure on the Government to increase taxes in the past. This year, that has been changed and NO new Taxes or any increase in Taxes are included in the Budget.

 

The Government has also removed the “Training Levy” which was supposed to raise K75m in the 2018 budget

Government taken measures to manage wild spendings by SOE’s

November 30, 2017

By ISAAC NICHOLAS

The Government has taken steps to centralise the budgetary process by cracking down on some public and statutory bodies collecting public monies and spend these outside of the Budget.

Deputy Prime Minister and Minister for Treasury and Finance Charles Abel said the Government is serious about improving the fiscal health of the country and this bill is a demonstration of that serious intent.

“Public funds that are raised by public and statutory bodies as non-tax revenue rightly belong in the Consolidated Revenue Fund so that they may be appropriated for expenditure by Parliament to meet the objectives of the Government.”

Opposition Leader Patrick Pruaitch interjected claiming that the bill is part of the budget bills and in normal tradition this bill must be passed along with the budget.

“Why are we dealing with Budget Bills separately when the debate on the budget has been adjourned to next week Tuesday? Can we stop sneaking in stuff? We need to be able to understand the bills and it is part of the budget papers. It is attached to the budget bills.”

Prime Minister Peter O’Neill had to intervene to allow Mr Abel to introduce the bill, make his speech and defer the passing to Tuesday next week.

Minister Abel then proceeded saying that for too long, it has been the practice of some public and statutory bodies to retain, without authority, this non tax revenue to meet operational and other expenditures.

“These expenditures have taken place outside the budget process and this is unacceptable to government. Some, but not all, public and statutory do have legislation in place that purportedly allows them to retain this non-profit revenue, but those provisions have always offended against the best principles of public financial management and this Bill remedies those matters.

The Bill binds all public and statutory bodies. State owned Enterprises are excluded as they are not statutory bodies.

The Bill does not apply to the Bougainville or any public or statutory body created by the Bougainville Government.

The Government has decided to explicitly exempt Kumul Consolidated Holdings, Kumul Petroleum Company and the Kumul Minerals Company from this law as fiscal arrangements to them are currently being reviewed.

Govt cracks down on out of budget spending by SOEs

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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