PNG PM O'Neil says there is need for Tax reduction

Papua New Guinea Prime Minister Peter O’Neill has stressed that there is a need for fiscal reforms to ensure that taxation is being reduced in his country.

Mr O’Neill while addressing the 2017 Leaders’ Summit this week in Port Moresby said this can only happen if the country’s revenue base expands.

He said this is because the level of tax rates in the country is far too high and needs to be reduced.

"But we can only do so when our revenue base expands where we can afford to give the savings that we are going to sacrifice in the taxes that we are collecting," he said.

Mr O’Neill acknowledged that there were few businesses in the country paying taxes and taking responsibility of servicing and funding the country’s budget.

He stressed that it is important the government now take into consideration and set a system across the country to track those who are not paying their taxes.

"We are also aware that there are large number of businesses not paying taxes and we need to be more engageable with the communities and businesses so that they too share the responsibility of funding government infrastructures for our people to use," he said.

The Prime Minister also added that in many instances the private sector can do well and that is why the government needs to get in partnership with them.

This bold step that the prime minister has taken would mean a lot for the private sector after the Business Council of PNG being vocal on businesses to comply with taxation laws and pay their taxes. Post Courier/PNG Today