He said the current tax regime is very hostile to Papua New Guineans and genuine investors with PNG’s tax rates currently the highest in the Pacific.
Juffa claimed that a significant portion of illegal and semi illegal businesses are earning profits, especially in the forestry and fisheries sectors as well as property and other poorly regulated businesses.
He added that such illegal entities are avoiding taxes and getting away with it, leaving the shortfall to be met by genuine investors like PNG SMEs and PNG wage earners.
“These non-genuine transnational criminal type entities were engaged in elaborate tax avoidance schemes such as transfer pricing and undervaluation, avoiding taxes and getting away with serious tax crimes while those who fronted up to pay their taxes were being penalised and punished.”
Juffa further reiterated that the Government needed to take drastic measures, including setting up a special parliamentary committee comprising MPs from both sides of the House who have the experience and knowledge of such matters.
He added that this will effectively address the issue of declining State revenue mainly through leakage and ineffective taxation administration.
Meanwhile, Juffa said some mines were among those who barely paid their full portion of taxes and a few foreign wage earners were earning an income in PNG illegally while on business and tourist visas.