INTERNAL Revenue Commissioner Sam Koim today announced that the GSTs Revenue of 60% that is directly remitted to the National Capital District Commission (NCDC) will now be split to Central, Gulf and the Motu-Koitabu Assembly respectively and no longer to NCDC.
Koim said he has made the decision after giving some considerable thought, to slice the Goods and Services Tax (GST) pie that goes to the NCDC in accordance with section 33(2) of the National Capital District Commission Act 2001 (as amended).
He said under the provision, IRC was mandatorily required to distribute directly, from the 60% due to NCDC, to Central Provincial Government (10%), Gulf Provincial Government (3%) and Motu Koitabu Assembly (2%).
“However, we have been remitting everything to NCDC, hoping that NCDC would do the right thing. Over the years, however, NCDC had been at best inconsistent, at worst, arrogant, in providing what is due to the people of Central, Gulf and Motu-Koitabu. This has resulted in countless and costly court proceedings where IRC was also dragged in,” Koim said.
He said immediately after he took office he invited Governor for NCD and the Governor for Central to a meeting where they reached an understanding on the way forward.
“Despite the best of efforts, we seem to be getting nowhere. The people who are supposed to benefit from the funds are suffering in the meantime.
“I believe it is the intention of the Legislature to avoid such a deadlock and whimsical arrangement by authorising IRC to make direct payments on account of NCDC. I believe it is fair and right to do what I am doing today to avoid further tensions and unnecessary court proceedings.
“The leaders who are heading the subnational governments are legislatures and if they want the law to be interpreted or applied differently, they should go to Parliament and change the law. But as a responsible administrative head of this organisation, I am applying the law as it is,” Koim said.
Central Governor, Robert Agarobe who has been fighting for this with his provincial government said it was a relief for the province and welcomed the IRC Commissioner’s bold move.
Meanwhile, NCDC is contemplating on getting this matter to court to stop revenue cut.
“The city hall will seek a permanent court order to stop the announcement of Goods and Services Tax slice.”
