Photo Credit: South Pacific International Container Terminal Ltd
In comparison to the first quarter of this year, revenue from customs taxes and excise has decreased in this quarter.
In the first quarter of the fiscal year 2021, K890 million in taxes were collected.
David Towe, the Commissioner of the PNG Customs Service, confirmed this. He did not say how much of a reduction there was from the first quarter, but he did say it was due to a drop in trade worldwide.
He stated that there is still a need to guarantee compliance in order to assist correct the income collection shortfall.
“In the first three months we were able to exceed our revenue projections and that came at the back of some improved compliance activities. We collected in excess of close to K50 million in unpaid taxes.
“We had conducted a revenue recovery exercise that went very well. We not only collected revenue but we also uncovered where the system collapsed, all the loopholes where the revenue leakages were,” Mr Towe said.
However, he stated that they began to see a decline in revenue for two or three weeks in this quarter. To remedy this, Customs was instructed to increase compliance and ensure that every import was thoroughly inspected so that no money was lost.
“We also have to ensure that we maintain control because not every importer is compliant and there will always be some who will try to cut corners to get away, whether intentionally or unintentionally. The most recent example is the importer who was caught.
“We cannot say that all importers are being compliant so we need to be extra vigilant to ensure every importer is clearing their cargo at the right quantity and rates.”
Customs income rose up again in the last check and during the last two or three weeks, according to Towe, who attributed this to improvements in monitoring and maintaining control.
He expects consistent growth in revenue in the coming quarter, as long as due diligence and compliance for all imports are maintained.
Reference:
Wakasup, Melissa. Loop (21 June 2021). “Customs Revenue Slumps”.
