The signing of the MOU with the Fly River Provincial Administration coincided with the official opening of a new IRC facility in Kiunga. The office space was allocated by the Fly River administration for its people to have easy access to IRC to make inquiries on tax matters, lodge documents relating to registrations, tax returns and pay their taxes.
These formal understandings will allow sharing of information by provincial administrations with IRC on businesses operating in the provinces and administrative or logistical supports where required, to improve IRC’s capacity to collect taxes in the provinces. In return, the provinces should see an increase in the GST revenue in the coming years as more businesses operating within the areas register and pay taxes.
The signing of the MoU is consistent with the National Government’s Medium Term Revenue Strategy (MTRS) 2018-22, to broaden the tax base and mobilise domestic tax revenue and the announcement by the Deputy Prime Minister and Treasurer, Charles Abel in the 2019 Budget, for improved partnerships and cooperation with provincial governments.
The IRC, through its Corporate Plan 2018-22, launched in March 2018 by the Deputy Prime Minister and Treasurer, is improving systems and processes.
This is part of its modernisation efforts to make it easier for businesses, especially SMEs, to pay taxes.
IRC is continuing to roll out its tax processing capabilities currently performed in its Port Moresby headquarters and its regional tax centres of Lae, Mt. Hagen and Kokopo, to some centres such as Wewak, Goroka, Alotau and Kimbe.
This will improve IRC’s ability to service taxpayers by promptly issuing TINs for new business registrations, enable taxpayers, especially SMEs, to pay tax using Eftpos, issue official receipts of taxes paid and statements of accounts for taxes paid as well as quickly know the lodgment and compliance history of a taxpayer based in the province.
IRC’s other provincial offices will come online in 2019 and throughout the medium term through to 2022, depending on IRC’s operational budget and continuing Government support.
(MOU signed between IRC and Fly River Provincial Government)