The Constitutional and Legislative Reform Commission (CLRC) will review personal income tax laws after the launch of its concept paper on October 1, 2021.

The terms of reference on the review of income tax laws in Papua New Guinea, specifically focus on personal income tax paid by civil servants and private sector employees, said the Minister. secretary Dr Mange Matui.

“This review is very necessary as income tax appears to be very high in PNG,” he said, adding that this was according to submissions made to the Tax Review Committee in 2014.

He said a 2018 internal discussion paper that triggered the review indicated, among other concerns, that officials in particular do not enjoy tax incentives and privileges, and therefore most officials working in cities have been forced to live and work from settlements and villages, exposing their lives to health and safety risks.

Dr Matui said the public and relevant stakeholders will be consulted to assess their views on key issues, including:
-The relationship between the cost of living and taxable income and whether the tax rate should be reconsidered;
– Public service tax incentives;
– Should the government reduce the income tax for civil servants?
– How the informal sector can contribute to taxation;
– whether retirement and retirement benefits should be tax exempt, and;
– Other questions related to taxation.

He said the CLRC is also aware of the government’s concerns and its reliance on taxes to fund the national budget, adding that the CLRC will conduct this review with due consideration.

Dr Matui said the consultations, which are a legal requirement, will take place in some provinces starting with Eastern Highlands and Madang on October 4 and 5, Simbu and Morobe on October 7 and 8, Manus and Northern on October 12 and 13. October and NCD on October 27.

The CLRC also accepts written submissions until November 5, 2021.

The Commission encourages the public, tax professionals and those with a working knowledge of tax or tax matters to provide their views by attending the regional consultations, by visiting the CLRC website www.clrc.gov. pg and the Facebook page www.facebook. com / pngclrc or email: [email protected]