CHIMBU PROVINCIAL GOVERNMENT PRESENTS K6.7 MILLION CHEQUE PAYMENTS TO IRC

CHIMBU PROVINCIAL GOVERNMENT PRESENTS K6.7 MILLION CHEQUE PAYMENTS TO IRC

On July 9, 2024, the Chimbu Provincial Government (CPG) led by Governor Hon Noah Kool and Provincial Administrator Mr John Punde, along with Senior Officials, showcased their dedication to tax compliance. They presented cheque payments totalling K6.7 million to the Commissioner General of the Internal Revenue Commission (IRC), Mr. Sam Koim, at the IRC Revenue Haus Office in Downtown Port Moresby. These payments were attributed to GST Section 65A deductions or withholdings covering tax periods from March 2023 to June 2024.

The Senior Officials from the Chimbu Provincial Government commended Mr Koim for his leadership and strategic vision in introducing the GST S65A initiatives, which had led to increased collections and transformative changes within the Internal Revenue Commission.

The Chimbu Provincial Administration, in conjunction with the District Development Authorities (DDAs) in Chimbu Province, adhered diligently to the GST Section 65A directive issued by the IRC, thereby fully remitting the GST S65A payments. The improved GST S65A collections from Chimbu had boosted internal revenue for the province as 60% of the total GST collected from the province is remitted back to the province. Since the implementation of the Section 65A directive, Chimbu province had doubled its internal revenues.?

During the meeting, CPG Officials emphasized the necessity for awareness and tailored training on GST Section 65A and taxation in general within Chimbu Province. The IRC team committed to collaborating with the CPG and DDAs to conduct the requested training session and make necessary preparations. The team also raised concerns about taxpayers conducting business operations in Chimbu while their business headquarters are located in another Tax Centre, leading them to lodge and pay taxes at their headquarters.?

The Commissioner General assured the team that through a taxpayer mapping exercise and data cleansing by the IRC Data Team, it was discovered that Chimbu has 67 mapped taxpayers, with 43 being active filers and 24 inactive. The CG pledged to collaborate with the Chimbu Provincial Administration through the IRC Kundiawa branch to reactivate the 24 inactive taxpayers.

Despite challenges, the Chimbu Provincial Government, under the leadership of Governor Mr. Kool and Provincial Administrator Mr. Punde, displayed outstanding teamwork by closely collaborating with DDAs to effectively implement the GST Section 65A directive. Their joint efforts underscore the importance of inter-agency cooperation in promoting tax compliance and revenue generation for community development.

The introduction of GST Section 65A at the subnational level is designed to address significant tax compliance gap amongst Government contractors. Entities that received the lawful directive are urged to comply and help IRC collect taxes. “Government entities must not only become big mouths to be fed (spending agencies) only, but also help in making the money through mechanisms like this.” Mr Koim added.?

This significant action by the Chimbu Provincial Government showcases its commitment to upholding tax regulations and contributing to the province and the nation's overall development.

Authorised for release

Mr. Sam Koim, OBE

Commissioner General

Internal Revenue Commission

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