Personal Income Tax

Consultation On Personal Income Tax

The Commission met with Lae residents on Friday, the 8th of October, and got their views on whether the tax rate should be changed, public service tax incentives, how the informal sector can contribute to tax and whether superannuation and retirement benefits should be free of tax.

CLRC secretary, Dr Mange Matui, said from their Madang and Lae consultations, they have noted the frustrations from public servants in relation to tax rates.

Personal Income Tax Vital To Economy

But he said working Papua New Guineans can get some reprieve through the government home ownership scheme with Bank South Pacific now available to them.

The Prime Minister was answering to Member for North Fly, James Donald this morning in Parliament who asked the Government to look into cutting down Personal Income Tax.

Even while acknowledging the many challenges the country is currently facing such as the global pandemic and its impact on the economy, Mr Donald, a Member of the Opposition went on to propose the cut.

Personal income tax revenue to be higher

Under the 2017 National Budget, Personal Income Tax is expected to increase by K186.6 million from the 2016 revised projection of K2, 849.1 million (K2.9 billion), after failing to reach budget estimate of the same figure in 2016.

The projection is said to be driven by the following factors: