In efforts to boost tax collection in the province a memorandum of understanding was signed between the Simbu Provincial Government and Internal Revenue Commission on Monday (June 22).
The signing took place at Simbu Provincial Headquarters in Kundiawa between the IRC Commissioner General, Sam Koim and the Simbu Provincial Administrator, Michael Bal Temai.
Prior to the signing of the MOU, CG Koim and Administrator Temai discussed tax matters including Goods and Services Tax (GST) revenue of which 60% is given back to the province.
According to Temai, the Simbu Provincial Government relies on the 60% GST revenue that IRC transfers to the province each month.
“The revenues we receive from GST component pays for the Provincial Government’s operations and the allowance for the PEC members…”
“..We therefore need to work together to increase this revenue under this MOU and that will definitely empower us to improve our cash flow position to finance other projects in the province..”
Administrator Temai further elaborated to the IRC Commissioner that the Provincial Government will work with IRC officers on the ground to make sure businesses in the province operate in compliance with their tax obligations.
In response, CG Koim explained that IRC is currently undergoing an organisational redesign and realignment process where provincial outlets will be empowered to operate effectively.
“If you feel that there are some taxpayers that are unjustly benefiting from the services that your administration is providing but are not paying their fair share of taxes, inform our team on the ground here,” Koim said.
He stressed on the concerns by taxpayers regarding taxes being diverted elsewhere.
“Taxpayers want to see that their tax is at work, so it encourages them to willingly pay their taxes. With this partnership, we look forward to work with you and explore ways where we can increase taxes,” Koim explained.
The discussion ended with the signing of the MOU signifying the collaboration of the two entities efforts to boost tax collection in Simbu Province.
According to the IRC, Simbu Province has registered more tax payers than SHP, Hela, Enga, and Jiwaka, hence, requires increased compliance activities.