Tag Archives: Internal Revenue Commission

IRC raises tax concessions issue

Who is it persuades politicians to grant tax concessions without consulting relevant government departments?

Is it the mining companies directly influencing Ministers to make decisions against the national interest, disadvantaging ordinary people?

The National aka The Loggers Times | April 20, 2017

DECISIONS to grant tax concessions and incentives to resource projects should be made with the involvement of government entities and relevant organisations as well, an official says.

Internal Revenue Commission commissioner-general Betty Palaso told the meeting of department heads in Mendi, Southern Highlands yesterday that the Government should consider the other entities.

“An important factor that we can factor into preparations for the new parliament is how government deals with tax concessions and tax incentives, etc,” Palaso said.

“A lot of time, submissions go directly to Cabinet, approving certain tax concessions and incentives before coming to IRC, Department of Treasury or Papua New Guinea Customs. And we are then told to implement it.

“For example, LNG has a lot of tax incentives.

“Therefore, we have not been able to get revenue in terms of corporate income tax for a long time.

“And that is because decisions were made to allow these kind of incentives to large multi nationals.

“We have to seriously think about it. And then we have another developer in the same sector coming in to say we want the same concessions given to this particular developer given to us as well.”

Palaso said once that was done, it reduced the country’s revenue base.

“So when that is done again, the revenue base is much more reduced,” she said.

“Now we can see the impact of the reduction in the commodity prices which is now impacting on how much revenue is being generated and coming into the Government to date.”

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Filed under Corruption, Financial returns, Papua New Guinea