The Waigani National Court has granted an injunction against the Internal Revenue Commission in distributing 10% to Central Province, 3% to Gulf and 2% to Motu-Koitabu from inland GST paid by business houses and service providers operating in the city.
The National Capital District Commission has welcomed the National Court ruling in granting an injunction against the IRC.
NCD Governor Powes Parkop called on IRC Commissioner General Sam Koim to remit GST funds from the National Government’s component of GST collected in NCD and not from the 60% component belonging to NCDC’s basket.
He said, “We have no intention to deprive Central Province of what is legally and ethically due to them. We are not against their claim to get additional GST payment form the GST collected in the city. All we are against and which the Supreme Court has agreed, is that additional payment does not come out of the NCDC’s component.”
The Governor maintained that NCDC has never failed to remit legal obligations to the Central Province and the Motu Koita Assembly until the end of 2020 when some funds were held back due to threats issued by Governor Robert Agarobe on social media.
However Governor Parkop revealed that NCD will not make any payments to Gulf Provincial Government as it will set a bad precedent for other city authorities and the Supreme court has not made any order to pay the Gulf Province either.
He said NCD has the right to receive its 60% of inland GST, as this is the one of its main source of income for the city.