Photo credit: Business Standard
Following the release of its issue paper on October 1st, the Constitutional and Law Reform Commission (CLRC) will review personal income tax rules.
According to CLRC Secretary Dr Mange Matui, the Terms of Reference on the revision of Income Tax Laws in Papua New Guinea focuses primarily on the Personal Income Tax paid by public officials and private sector employees.
“This review is quite necessary because income tax seems to be very high in PNG,” he said, adding, this is according to the submissions made to the Tax Review Committee in 2014.
According to him, an internal discussion paper from 2018 sparked the review because it revealed, among other things, that public servants, in particular, are not benefiting from tax incentives and privileges, and as a result, most public servants working in towns and cities have been pushed to live and work in settlements and villages, putting their lives in danger.
Dr Matui stated that the public and relevant stakeholders would be polled on the Key Issues, which include:
- the connection between living costs and taxable income, and if the tax rate should be changed;
- public service tax incentives;
- whether the government should lower the income tax rate for public servants;
- ways the informal sector may help with taxes;
- whether tax-free superannuation and retirement benefits should be available,
- other tax-related concerns.
CLRC is also aware of the Government's concerns and reliance on taxes to support the National Budget, he added, adding that the review would be conducted with care.
Dr Matui added consultations, which are required by law, would begin on the 4th and 5th of October in the Eastern Highlands and Madang, on the 7th and 8th of October in Simbu and Morobe, on the 12th and 13th of October in Manus and Oro, and on the 27th of October in NCD.
Written contributions are also being accepted through November 5th, 2021, by the CLRC.
The Commission is encouraging members of the public, tax professionals, and anyone with working knowledge of tax or tax-related issues to participate in the regional consultations through their Facebook page or website.
Reference:
Loop (24 September 2021). “Personal Income Tax Laws In Review”.
