Teaching Services Commission Fears Tax Increase

By Bridgette Komatep – EM TV, Port Moresby

The Teaching Services Commission has come out clear on why teachers’ leave fares could not be processed directly into their bank accounts last year.

TSC Chairman Baran Sori clarified that as an income, the leave fares could have been taxed by the Internal Revenue Commission.

In fact, their leave fares would have been taxed by IRC at a rate of 30 percent.

Upon the advice of Internal Revenue Commission, the Teaching Service Commission resorted to depositing teachers leave fares into the District Treasuries. They feared it might get taxed at a rate of 30 percent.

District Treasuries were responsible to distribute the leave fares accordingly; however, that remains a concern.

Another grey area identified in the teachers leave fare saga is that Travel Agents, who deduct 30 percent from the leave fares as Admin Costs, from this charge.

Chairman of Teaching Service Commission said the findings from the Ganim Report identified 12 major problem areas in the disbursement of teacher’s salaries and other entitlements at elementary, primary and secondary schools nationwide.

The report containing all the grey areas will be presented to parliament by the Working Committee Chairman who is the Member for Wabag, Robert Ganim in February this year.

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