Tax reform should not be blindsided by a tax purist’s approach, says the Chairman of the PNG Tax Review Committee, Sir Nagora Bogan
He said this entrapment can occur when you consider that tax is something you live with from cradle to grave.
Sir Nagora made these remarks when presenting the Tax Review Report to the Treasurer Patrick Pruaitch on Wednesday in Port Moresby.
He pointed out that in the design and architecture of tax reform, it is important to see the tax system as a “system” rather than consider its different elements in isolation.
He said the silo approach to tax reform ignores the fact that tax systems are part of the fabric of a nation.
Sir Nagora added that the focus on institutional design and technical and legal issues of tax is incomplete if it ignores the political nature and dynamics of taxation and how the reform becomes legitimate.
“Consequently, any review of a tax system needs to factor in the political economy drivers that underpin tax reforms and how the political context of a country shapes their intended outcomes.