PNG Government Rakes In K17.3 Billion as Tax System Tightens

 PNG tax revenue climbed to K17.3 billion last year, reflecting stronger collections by the Internal Revenue Commission as new tax laws and system upgrades took effect across the country.

The increase, up from K16.6 billion the previous year, was revealed by IRC Acting Commissioner-General Sam Loi, who said reforms within the organisation were beginning to deliver results despite ongoing economic pressures.

AI represenation of PNG Tax Office

He said the Government invested about K130 million to modernise tax administration, improve compliance and strengthen internal systems, allowing revenue officers to better track and collect taxes nationwide.

Although collections were slightly below the original budget estimate, Mr Loi said most of the revenue was successfully transferred to the State, with more than K15.8 billion paid into the public account. He added that billions more were distributed through GST payments to provinces and refunds to eligible taxpayers.

Mr Loi also addressed concerns about the new Income Tax Act, saying most workers would not see any reduction in their take-home pay. Only employees receiving vehicle benefits would experience changes in how those benefits are taxed.

Prime Minister James Marape said the outcome was encouraging, especially as the Government had introduced major tax relief measures. “We removed GST from essential goods and raised the tax-free threshold to K20,000, yet revenue performance has remained strong,” he said.