Tax Review Committee

This will improve the competitiveness of the tax system and attract capital and grow investment, economic development and jobs. 

The committee pointed out that increased economic activity would grow the tax base.

They (committee) stressed that currently the CIT 30% rate is at the high end for Asia- Pacific region and is hindering investment, innovation, and risk taking.

They also found out that the current rates places pressure on government for tax breaks sought by investors.

The committee says the existing corporate income tax base is being eroded.

Sir Nagora says our economy has expanded so fast and become more complex, but the most risky feature is that our economy is too dependent on the non-renewable extractive sector.

“We have a small manufacturing base, a tourism base that is shackled by expensive airfares and perception of law and order, a fisheries base that has untapped potential as we have 30% of the world’s tuna but yet collect a pittance in licence fees, a forestry sector that is maligned and exploited with less regard for environmental and inter-generational considerations.”

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.

He said what the people needed to realize and appreciate was that tax reform is complex.

“It involves different stakeholders with diverse interest and trade-off. It affects people across different political, economic and social strata of society.”

Sir Nagora says that it also creates winners and losers, who will vociferously defend their interest, however many of the interests may be contrary to public good and the best interests of PNG.

Tax Review Committee chairman Sir Nagora Bogan in a statement said if properly managed, the results can be far reaching, transcending generations with the potential to impact an entire nation. 

He said it can positively influence Papua New Guinea’s socio-economic growth and international reputation.

“It is time to get out of our comfort zone, think outside of the box. 

Committee Chairman Sir Nagora Bogan in a formal ceremony handed volumes 1 and 2 of the TRC reports to the Treasurer Patrick Pruaitch.

The report is the culmination of an intensive, robust, open and transparent consultation with a wide cross-section of stakeholders, workshops and technical summit, empirical analysis, diagnostic reviews, and comparative benchmarking with international best practices.

The review was conducted over a period of 26 months from Sept 15, 2013 to Oct 24, 2015, but was delayed by eight months due to bureaucratic ineptitude and red tape.

He said for the first time the review had paid special attention and given priority to Revenue Administration reform.

“Revenue administration is the critical lynchpin of the reform.”

He said this required a more holistic and innovative reform comprising clearly pronounced overarching policy framework, robust and modern governance framework which includes establishing a “Revenue Administration Board”, and complete transformation and modernization of all revenue administration functions and operations.

Claim that minister-sponsored police to burn village houses

http://www.looppng.com/content/claim-minister-sponsored-police-burn-village-houses

Eight houses in a village in East Sepik Province were burnt to the ground, allegedly by police brought into the district by a local Member of Parliament to curb crime in his electorate.

Fight against breast cancer in ENB gaining strength