Juffa calls for tax exemption review

Governor for Oro Garry Juffa has called for tax exemptions review in the country.

He said not just that exemptions should be reviewed but taxes due should be collected.

“Our tax system is a broken machine which is a leaking bucket with wide open holes with which we are attempting at fetching tax revenues.”

He added that countless advise to restructure the IRC and deploy tax collectors to target those who avoid taxes keep falling on deaf ears.

Juffa said a proper intelligence driven tax strategy managed and operated by elite well paid Tax Officers and Customs Officers will ensure maximum collection of taxes.

“Right now PNG is only collecting 30% of its taxes due.

“Forestry, fisheries and mining companies are NOT paying the right taxes and amounts,” he said.

“According to reliable intelligence, several shipment of logs worth millions of tax leaves PNG scot free tax free every month.

“Multiply a conservative K1m per month in avoided taxes per 12 months and that’s a conservative estimate of the taxes avoided per annum by logging companies.

He said the fishing companies are doing the same.

Juffa said while retail wholesale outlets that came in as tucker boxes 5 to 10 years ago are now giant corporations purely from tax avoidance

“Cigarette factories producing cigarettes for PNG markets are operating across the border - all imported illegally tax free.”

He claimed that a major local alcohol producer avoids taxes by paying workers half their wages in cash and not declaring ethanol imports has built an empire worth hundreds of millions in a decade.

“Meanwhile genuine tax payers are penalised and overtaxed even with genuine refunds painfully slow,” he added.

He said the tax companies pay is also too high at 30% plus and the tax wage earners both local and expat pay is also too high.

“Bring down taxes to a reasonable level, design intelligence and risk assessment driven tax strategies with elite audit teams and prosecute tax avoiders, pay Revenue Officers better wages and benefits and you will effectively collect tax,” Juffa recommended.

Author: 
Freddy Mou