In the first half of 2023, the Internal Revenue Commission (IRC) witnessed a total inflow of K8.474 billion in tax revenue collection.
Impressively, K7.211 billion was transferred to the Waigani Public Accounts by June 2023, exceeding expectations. Excluding the 2022 carryover balance, the IRC achieved unprecedented heights in revenue collection during the first half of 2023, as per its revenue performance report.
The IRC stated that the K6.891 billion generated surpassed the year-to-date target by an impressive 20 percent and a remarkable 10 percent increase compared to the half-year results of 2022.
The leading tax types that have contributed 90 percent of the 2023 half-year collections are:
- Salaries and Wages
Salaries and Wages Tax continued its steady growth, averaging a 10.5 percent increase compared to the same period in 2021.
- Corporate Income Tax
Corporate Income Tax saw an exceptional 85.6 percent growth compared to the same period in 2021, due to efficient collection techniques and interventions.
- Goods and Services Tax
Goods and Services Tax (GST) achieved an outstanding 67 percent growth, supported by rigorous credit verification processes and the impactful Section 65A project.
- Mining and Petroleum Taxes
Mining and Petroleum Taxes declined by only 9 percent despite a drop in oil prices, showcasing the IRC's diligence in accurate provisional tax assessments.
Commissioner General of IRC, Sam Koim was delighted to present the IRC mid-year revenue performance report, showcasing remarkable achievements and key outcomes from January 2023 to June 2023.
“This comprehensive overview highlights our tax administration's dedication to revenue generation and compliance enforcement,” Commissioner Koim said.
“Even after discounting the 2022 carryover balance, the IRC remains 5 percent above the year-to-date target, demonstrating our unwavering commitment to excellence. To put this feat into perspective, the revenue generated in the first half of 2023 alone rivals the annual collections witnessed between 2015 and 2017.”
Commissioner Koim said the remarkable increase in revenue collections can be attributed to transformative changes at the IRC, based on effective collection strategies, enhanced compliance measures, and impactful outreach and education initiatives, amongst others, have fostered a voluntary compliance environment.
“Our growth is not solely dependent on windfalls from the extractive sector but is driven by the outstanding performance of major tax types in a sustainable manner. As we continue implementing major revenue-raising initiatives and transformational changes, we believe that the best is yet to come.”