IRC RAKES IN K15 BILLION IN 2022: PM
by PNG Business News - January 02, 2023
Photo credit: Internal Revenue Commission PNG - Revenue Haus in Port Moresby
The Internal Revenue Commission has collected a record revenue of K15 billion for the public purse this year, according to Prime Minister, James Marape.
In a media statement PM Marape has commended the management and staff of Internal Revenue Commission (IRC) for being an exemplary public service organization whose performance, he said, has been improving year after year in the work they do with increasing revenue collection for the country.
The Prime Minister said this during an event he officiated yesterday for the launch of the organisation’s 2022 Work Plan and 5-Year Corporate Plan.
“ICR, thank you very much for another successful year. I say thank you to you all – from the management down to the staff, every one of you who make this organisation functional,” said the Prime Minister.
“Thank you for putting together a K15 billion revenue this year.
“In 2021, without the oil price increase, you collected about K270 million for our country.
“In 2020 during the COVID-19 year, when the entire planet shut down, you collected over 100 percent, beyond what we asked of you to collect.
“This is an indication to the country that IRC is not sleeping but has been working. Your performance speaks for itself. Numbers do not lie.
“It is also an indication to all government departments that the organization that makes money takes precedence. We must support them.”
Prime Minister Marape assured IRC that his Government would fully support its 2023 work plan and that he was looking forward to seeing the implementation of the 5-year strategic plan so that as PNG celebrates its 50th anniversary as a country in several years, IRC would have matured into a dynamic organisation carrying forward the country through the revenue it collects.
“We want our country to be bigger and better in terms of Education, Health, Law & Order, Infrastructure, and Economy. These five things we want to focus on. I look forward to supporting you as we deliver these.”
He said in delivering the corporate plan, IRC must endeavor to abide by these three rules – firmness (corporate and individual citizens to abide by the laws), fairness (all taxpaying citizens to be treated with fairness), and friendliness (tax-collecting business to be handled in a cordial atmosphere).
“I look forward to the time when IRC will bring those in the black economy into the formal economy to ensure that we all pay our fair share of dues.
“We must all work to leave behind a legacy in our country. Appreciate your place and the job you have today. Look at what you must do, for your country in the big picture. There is no one else placed to make your country better but you.
"You will deliver in 2023, you will deliver in 2024; I look forward to the time when IRC becomes a robust organisation that collects all revenue required by law,” said PM Marape.
The Prime Minister said regarding housing for IRC staff, his government is currently setting aside K10 million for an housing program that would assist government workers to own a house. This is to assist with job security, so IRC staff concentrate on doing a good job in delivering the organisation’s plans and making more money for the country.
PNG Business News - June 28, 2021
IRC and ENB Form Partnership
The Internal Revenue Commision (IRC) and the government of East New Britain (ENB) have formed a partnership to work together on tax collection in the province. IRC commissioner-general Sam Koim and ENB administrator Wilson Matava signed a memorandum of agreement in Kokopo. ENB ranked third in terms of tax collection, but Matava and Koim believe there is still space for growth. The collaboration would allow parties to share information while also allowing the province to assist in improving tax compliance. Matava believes the province's internal income base has a lot of room to develop. “The ENB government has aspirations to gain autonomy, but that will just be a dream if your internal revenue is not strong,” he said. “We are here to help, especially in increasing goods and services tax (GST) collections, so that we will give 60 per cent.” Koim highlighted that taking advantage of the recently implemented small-business tax system has resulted in a good collaboration in the growth of micro and small companies. He said, “ENBPG has aspirations to gain autonomy, but that will just be a dream if your internal revenue is not strong. We are here to help, especially in increasing GST collections so that we will give the 60% of the “more we collect”, to help grow your Provincial economy.”
PNG Business News - February 10, 2022
IRC Expects K9.3B Tax Revenue This Year
Photo: Commissioner-General Sam Koim According to Commissioner-General Sam Koim, the Internal Income Commission (IRC) expects to earn roughly K9.3 billion in tax revenue this year. In response to an inquiry, Koim stated that the IRC's income objective had been boosted by around K1.4 billion by the government. “Last year, we collected, in terms of net transactions to the WPA (Waigani Public Accounts), our target was K8.1 billion, but we transferred about K8.3 billion as of Dec 31, 2021,” he said. “So we exceeded the target by K200 million but in terms of gross collection, we’ve gone over about K9.5 billion. We had about K721 million transferred to all the provinces in GST distribution, we gave about 60 per cent of the GST back to the provinces where the GST is collected to support the provincial government. “Last year was a very challenging year, we still had subdued economic conditions as a result of the global Coronavirus (Covid-19). “But our team stepped up in a major way, with the Covid, we also re-strategised and moved into where the leakages were and low hanging fruits and also moving into the agile way of doing business. “In that way, it has really yielded some results that were great so we are looking at taking advantage of some of those and doing a lot of new things this year as well.” Koim said the IRC was developing products and projects to improve the organisation and also boost revenue collection. “We are hoping that by the time all the projects come to fruition, we’ll be collecting increased revenue at an optimal and sustainable level in the next three years,” he said. “This year, the Government has increased our revenue target by at least K1.3 to K1.4 billion.” Reference: Luma, Dale. The National (7 February 2022). “IRC aims to collect K9.3bil in tax revenue this year: Koim”.
PNG Business News - February 23, 2022
IRC Inaugurates 2022 Annual Work Plan
The Internal Revenue Commission has inaugurated its 2022 annual work plan at the Revenue Haus in Port Moresby, with the subject "Building the basis of a robust, modern, and efficient tax administration by 2025." Commissioner General Sam Koim of the Internal Revenue Service (IRC) said 2021 would be a difficult year, but with the goal of making IRC a strong, modern, and efficient tax administration by 2025, IRC has dedicated the last few years of his presidency to laying the groundwork for that vision, which is based on seven strategic pillars. IRC has gathered a lot of activities around these seven pillars, according to him, and its strategic purpose for 2022 remains unaltered. “IRC has turned a corner in adopting a measured project management discipline in implementing key initiatives, and despite the measured approach, some of the initiatives featured in the last two annual plans remain incomplete. Therefore, aside from the business as usual priorities, more focus will be given to remaining foundational initiatives,” he said. Mr Koim stated that IRC's total budget prediction for 2022 is K10.509 billion, up 16 per cent or K1.327 billion from projections for 2021. He added that gross income for 2021 was K9.221 billion, based on the premise of unrestricted economic circumstances and intensified compliance efforts, but that despite the slowing economy, IRC collected K9.596 billion, exceeding the target by K375 million. Mr Koim said that the closing of Porgera Mine had a negative impact on tax collection and that the IRC had seen a decrease in employment and commercial activity in general. He went on to say that the rise in Salaries and Wages taxes, Mining and Petroleum taxes, Debt Swap, and GST raised with the introduction of S65A were all contributing elements to IRC's remarkable performance in 2021. IRC is optimistic in producing strong results this year, according to Mr Koim, because they have a lot of scheduled projects to complete. Reference: Kamus, Maxine. Post-Courier (21 February 2022). “IRC Launch 2022 Annual Work Plan”.
Paul Oeka - March 27, 2023
Papua LNG project to Minimise Economic Challenges
Photo: Petroleum Minister Kerenga Kua Petroleum Minister Kerenga Kua has recently stated that the Papua LNG project is critical in addressing some of the economic challenges that are currently faced in the country. He said about K75 billion will be generated over a 15 year period when the project is in progress. He added that the initial stages of the project has commenced with K500 million said to be inputted into PNGs foreign exchange capacity in 2023. During a press conference on Thursday the 9th of March, The Petroleum minister highlighted the progressive stages of the Papua LNG project and emphasized the importance and significance of the benefits that the project will provide. According to studies the project life is expected to operate over a 15 year period that will generate about K75 billion and significantly boost Papua New Guinea's struggling economy. "The K75 billion benefit is inclusive of what comes to the state directly as levies, to Kumul Petroleum, to the landowners as royalties and the provincial governments. All of us put together are going to be collecting and sharing that benefit in the next 15 to 20 years", Kua said. Minister Kua said that studies for the Papua LNG project began in 2004 following the discovery by Interoil, the resource estimate is in the range of 6 trillion cubic feet of gas and 98 to 100 million barrels of condensive oil. The benefit of this project is immense and a positive component is the national content which is expected to positively impact GDP, export earnings, forex, revenue to impacted levels of government, landowner benefits and Job opportunities. Minister Kua said the project developer Total Energies will inject K500 million into the PNG economy in 2023. "The Papua LNG project is a project of national significance for Papua New Guinea and will stimulate business confidence and will provide a significant impetus for our economy", "The Marape-Rosso government places high priority on the delivery of the Papua LNG project, we have an improved deal for our people, and improved contribution for our national contractors and workforce. The government strongly supports the Papua LNG project and encourages all stakeholders including project partners to work diligently to deliver the project on time and on budget", Minister Kua said. Petroleum Secretary David Manau was also present at the conference, he highlighted that the petroleum department will work closely with impacted provincial governments and landowners as this is important in ensuring that all stakeholder grievances are discussed and addressed. In light of this, a development forum is expected in the third quarter of this year. Meanwhile, Kua also revealed a unique aspect of the upcoming project which will mitigate the project's carbon footprint and is set to make PNG in becoming the first country in the Asia Pacific region and only the second on the world to re-inject carbon dioxide back into the well pad in a LNG project. He said the re-inspection of carbon dioxide into the well pad is a significant step towards reducing the project's carbon footprint and will help mitigate the environmental impact of the project and contribute to Papua New Guinea's efforts to combat climate change. The Papua LNG project is a joint venture between the PNG government, TotalEnergies and Exxon Mobil. It is one of the largest investments in the country's history and is expected to generate significant revenue for PNG's economy. Total Energies holds 40.1 percent interest in Papua LNG, along with its joint venture partners Exxon Mobil (37.1 percent) and Santos(22.8 percent). The Papua New Guinea government may exercise a back-in right of up to 22.5 percent interest at the Final Investment Decision (FDI) planned by end of 2023 to early 2024 and production will be scheduled for four years later.
PNG Business News - March 27, 2023
WanPNG: The Skills Development and Jobs Platform for the People of Papua New Guinea
Wan PNG is a platform and community dedicated to expanding opportunities for local Papua New Guineans. Its goal is to increase the development and sustainable employment of local PNG talent, so everyone in our great nation can share in newfound resources and growing prosperity. With the goal of empowering individuals and businesses with the skills and people they need to succeed in the 21st century world, the Wan PNG platform spans three core areas for job seekers: Employment opportunities: Gain experience with internships, start earning with entry positions, or upgrade your career with the next big job. Career advice: Advance your career with expert advice and professional resources, and stay up-to-date on the latest news. Education and training: Expand your employment prospects by upgrading your knowledge, skills, and competencies through courses. For employers it provides: Free access to upload jobs and find the best talent. Smart matching between jobs and candidates. Diversity promoting candidate suggestions reaching a wide pool of talent. The platform's primary objective is to promote lifelong learning and employment and simultaneously bridge the skills gap in Papua New Guinea by providing accessible training opportunities to all its citizens. WanPNG believes that by investing in the development of its people, Papua New Guinea can unlock its full potential and become a more prosperous nation. WanPNG is now available for job seekers and employers. Visit the website now at www.wanpng.com to learn more.
PNG Business News - March 27, 2023
St John Ambulance First Aid Training for Workplace
The St John ambulance service responded to over 21,000 emergencies across Papua New Guinea in 2022. In addition to being Papua New Guinea’s main emergency ambulance service, St John is the nation’s leading first aid training provider equipping thousands of workers with essential first aid skills and knowledge. With just one day of training, St John’s expert first aid trainers can equip your workers with the basic skills to handle all kinds of first aid emergencies. Workplace accidents and injuries are a common occurrence and it is essential for employers to have a competent workforce that can respond effectively to emergencies. St John’s workplace first aid courses ensure your workforce is equipped with the first aid training to assist a sick or injured person. It also helps organizations comply with legal requirements, reduce workplace injuries and fatalities and promote a culture of safety and preparedness. The Papua New Guinea St John Ambulance provides training routinely in Port Moresby and Lae, and can facilitate training at any location in PNG, which makes it easy for workers to gain or maintain their first aid qualifications. St John’s first aid trainers come from a variety of backgrounds, enabling them to contribute real-life experiences to the training environment. Each course, based on St John Ambulance Australia’s training resources, goesthrough rigorous appraisal by training and health specialists including St John’s Papua New Guinea’s medical expert advisory panel - made up of some of the industry’s leading physicians and health professionals, who ultimately endorse the clinical training content components of the first aid courses. St John CEO Matt Cannon said, “this rigorous appraisal process gives clients the confidence of St John’s commitment to delivering the highest quality in training content and delivery in Papua New Guinea.” Workplace first aid courses cover a broad range of topics, including basic life support, wound care, bandaging, splinting, CPR and using an AED. Participants learn how to identify and manage different medical emergencies such as heart attacks, strokes, burns, fractures, and poisoning. Each training program is designed to be flexible and can be delivered on-site or at one of our training centres. If you want to ensure that your workplace is prepared to respond to emergencies, contact St John today to learn more about our workplace first aid training.