Papua New Guinea
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IRC transfers K7.2 billion into Public Accounts: Koim

In the first half of 2023 the Internal Revenue Commission witnessed a substantial total inflow of K8.474 billion in tax revenue collection and transferred a total of K7.211 billion to the Waigani Public Accounts by June 2023.

Internal Revenue Commission (IRC) Commissioner Sam Koim said the K7.211 billion transferred to Waigani Public Accounts (WPA) exceeded expectations even after discounting the carryover balance, the IRC remains 5 per cent above the year-to-date target, demonstrating their unwavering commitment to excellence.

Commissioner Koim said to put this feat into perspective, the revenue generated in the first half of 2023 alone rivals the annual collections witnessed between 2015 and 2017.

“Excluding the 2022 carryover balance, the IRC achieved unprecedented heights in revenue collection during the first half of 2023.

The astounding K6.891 billion generated surpassed the year-to-date target by an impressive 20 per cent and marked a remarkable 10 per cent increase compared to the half-year results of last year.

The major tax types, Salaries and Wages Tax (SWT), Corporate Income Tax (CIT), Goods and Services Tax (GST), and Mining and Petroleum Taxes (MPT), contributed to 90 per cent of the 2023 half-year collections.

Corporate Income Tax (CIT) saw an exceptional 85.6 per cent growth compared to the same period in 2021, thanks to efficient collection techniques and interventions.

Goods and Services Tax (GST) achieved an outstanding 67 per cent growth, supported by rigorous credit verification processes and the impactful Section 65A project,” Commissioner Koim said.

He said for Salaries and Wages Tax (SWT) continued its steady growth, averaging a 10.5 per cent increase compared to the same period in 2021.

“The Mining and Petroleum Taxes (MPT) impressively declined by only 9 per cent despite a drop in oil prices, showcasing the IRC’s diligence in accurate provisional tax assessments.

The remarkable increase in revenue collections can be attributed to transformative changes at the IRC. Effective collection strategies, enhanced compliance measures, and impactful outreach and education initiatives, amongst others, have fostered a voluntary compliance environment,” he said.

Commissioner Koim said these half-year results illustrate the IRC’s unwavering commitment to historical revenue collection achievements.

“Our growth is not solely dependent on windfalls from the extractive sector but is driven by the outstanding performance of major tax types in a sustainable manner.

As we continue implementing major revenue-raising initiatives and transformational changes, we firmly believe that the best is yet to come,” Mr Koim said.