Salary Sacrificing in PNG

(This article appeared in the Post Courier on 3 September 2014)

Salary sacrificing also known as salary packaging is the inclusion of employee benefits (fringe benefits) in an employee remuneration package in exchange for giving up part of the monetary salary. Such arrangements are entered into most commonly if there is tax or other benefit to be derived by the employer or employee from the arrangement.

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What Next for Goods & Services Tax in PNG?

(This article appeared in the Post Courier on 27 August 2014)

Good and Services Tax (or Value Added Tax) was first introduced in PNG on 01 July 1999. GST is a broad-based domestic consumption tax that is charged on the sale of goods and services by GST-registered entities. It is charged on all stages of production but with the provision for taxpayers to offset tax paid on their own purchases of goods and services against GST charged on their sales. The end-user or consumer ultimately pays the tax.

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The Management of Tax Incentives

(This article appeared in the Post Courier on 20 August 2014)

Tax Incentives include special tax exemptions, deductions or the deferral of tax liabilities to encourage the growth or competitiveness of a type of business or activity. A previous column for the Review examined the advantages and disadvantages of such incentives in the law and the Review will shortly be publishing a paper for public consultation on this issue.

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Tax Reform – Good for you, good for PNG

(This article appeared in the Post Courier on 14 August 2014)

Tax reform is essential for building opportunities for people in developing countries. Why?

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Find attached also is the reply to the article by one of our fellow Papua New Guinean on the “YU TOK” Section on the Post Courior.

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An exercise in excise

(This article appeared in the Post Courier on 6 August 2014)

In Papua New Guinea, excise is payable on certain imported and locally manufactured goods. In PNG, excise charges form an important part of the revenue base, raising over K500 million in 2013. So what is excise, and why is it imposed?

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Mining and Petroleum Taxation – The importance of Getting It Right

(This article appeared in the Post Courier on 30 July 2014)

Ours is a country blessed with an abundance of natural resources. These resources belong to Papua New Guinea and its people.
Mining has long been a feature of the PNG economy. With the first shipments of natural gas leaving PNG’s shores in recent months, the importance of the extractive sectors to PNG’s economy looks set to continue.

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History of Taxation

Taxation, a window into human history

(This article appeared in the Post Courier on Thursday, 24 July)

“The arrears of taxes which lay on the peoples of Egypt, he (Ptolemy V) remitted, an amount immense, how much is not known.”
These words are etched into a large piece of granite that were inscribed over 2,200 years ago in Ptolemaic Egypt and which now sits pride of place at the British Museum in London. The Rosetta stone, as it is known, is one of the most significant archaeological discoveries of the last few centuries. Of course its importance lies not so much in its message, but the fact that the message was inscribed in three languages including Ancient Greek and Egyptian hieroglyphics, allowing archaeologists to finally decipher the latter and better understand the life of the ancient Egyptians.

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Common Themes for Consultation

What do Papua New Guineans think about their tax system?

(This article appeared in the Post Courier, 16 July 2014)

On Friday 4 July, the Tax Review Committee held its third regional Open Consultation forum in Madang. Committee Members, Sir Nagora Bogan (Chairman), and Lady Aivu Tauvasa (Member) were joined by over 100 people to share, exchange comments, views and ideas on the future of PNG’s tax system.

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What makes a good tax system?

How can we know if the tax system is working well for PNG? This is the basic question that the Tax Review had to answer before it could begin its work. A good tax system should satisfy five general principles.

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Personal Income Tax – Have Your Say

The PNG Tax Review that is currently under way has been asked to examine a range of taxes that the government imposes and collects to fund goods and services for the people of Papua New Guinea. However, the one tax that has attracted the most interest in the Review to date is personal income tax.

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