PNG PM Marape announces record K9.7 Billion Tax Revenue performance

Papua New Guinea Prime Minister  James Marape has announced a record K9.7 billion tax revenue collection by the Internal Revenue Commission (IRC).

He made the announcement as he prepares to travel to London for the funeral service of Queen Elizabeth II and as Papua New Guinea prepares to celebrate its 47th Independence anniversary on Friday, September 16, 2022.

“I commend the sterling performance by the Internal Revenue Commission for the last eight months,” PM Marape said.

“Papua New Guinea could not have asked for a better 47th Independence Anniversary performance indicator of a key State energy working its heart out. This record collection is the highest ever since 1975, and most importantly, highest collection ever in a tough year.

“As of week ending September 9, 2022, the Internal Revenue Commission has collected around K9.7 billion with net transfers of K9.4 billion to the Waigani Public Accounts as projected by the 2022 National Budget.

“This is a record achievement in a fiscal year, where IRC was able to surpass its annual target in the space of only eight months.

“Compare the first eight months of this year with first eight months of last four years:

“IRC’s Tax Revenue Collections in 2022 was boosted by a windfall in the petroleum and gas sector directly related to the Russian-Ukraine conflict. The global supply constraint coupled with higher demand as a result of post-COVID normalcy has seen the price of oil nearly double in space of just 12 months. Total Mining and Petroleum Tax (MPT) collection in the first eight months of 2022 totalled K2.965 billion.

“Whilst windfall from MPT is acknowledged, other taxes have also performed strongly in 2022 – a reflection of some of the transformational interventions introduced at IRC since 2019.

“The average MPT collections for the past four years (2018-2021) was K379 million.

“The average total collection for first eight months of the last four years was K5.657 billion.

“2022 total collection for the first eight months, less the MPT windfall, is K7.163 billion.

“A total of K1.5 billion in increase revenue not attributed to MPT windfall has eventuated in the last eight months of 2022.

“Non MPT taxes have performed well above the average of the last four years. IRC is beginning to see the fruits of its revenue initiatives and will continue to strive on becoming a robust and efficient tax administration by 2025.”

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