The Internal Revenue Commission (IRC) has inaugurated its 2022 annual work plan with the theme “Building the basis of a robust, modern, and efficient tax administration by 2025”. The inauguration took place at the Revenue Haus in Port Moresby.
Sam Koim, the IRC Commissioner General, stated that 2021 had been a challenging year, but the IRC’s goals remain unchanged. He said the IRC had dedicated the last few years toward laying the groundwork for an efficient and modern tax administration by 2025.
Mr Koim said the vision for the IRC was based on seven strategic pillars. He added that several activities had been planned around these pillars and the strategic purpose for 2022 is unchanged.
“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,” Mr Koim said.
The Commissioner said gross income for 2021 was K9.221 billion, which was based on the premise of intensified compliance efforts and unrestricted economic circumstances. Even with a slowing economy, the IRC collected K9.596 billion for the year, exceeding its target by K375 million.
For 2022, the IRC’s total budget prediction is K10.509 billion. This is an increase of K1.327 billion, roughly 16 per cent, compared to 2021’s projections.
Commissioner General Koim noted the closure of the Porgera Mine had negatively impacted tax collection and that there had been a general decrease in commercial activity and employment. He then said the IRC’s strong performance was due to several factors, including a rise in Mining and Petroleum taxes, Salaries and Wages taxes, GST raised thanks to the introduction of S65A, and Debt Swap.
Mr Koim said the IRC was optimistic about producing solid results in 2022 as they had several projects scheduled to complete.
