By CLIFFORD FAIPARIK
THE Internal Revenue Commission (IRC) has plans to reduce personal tax as well as corporate tax once collection mechanism of Goods and Services Taxes (GST) are been improved, IRC Commissioner General Sam Koim says
“We are introducing to collect GST right at the cashiers. After all, GST is the only tax we are contributing both people in formal and informal sectors.
“So, the future for tax payers, what we are looking at is we want to tax right and not tax more. If we have a robust GST collection mechanism in place, the proposal we want to put before the government is to reduce the salary wages tax because every extra monies, people have the desire to spend and they will go to the shop and spend it.
“You spend it, there’s a GST mechanisms at the tiller to collect it. And extract the GST component. Also we plan at reducing corporate income tax from every one. It is high for investors (48%) and local companies (30%).”
“We plan to decrease it when we improve on our GST collection systems. Some of the companies that are doing transfer pricing overseas will have to transfer pricing back to PNG. So we will reduce tax as soon as we set up all the mechanism to collect GST,” Koim said.
Mr Koim said this last Thursday during the Media Press club at Lamana hotel in Port Moresby.
