Region-wide Taxation Awareness begins this week
A region-wide awareness and consultation program is underway in Bougainville following the endorsement by the Bougainville Executive Council on several taxation policies.
Acting Chief Commissioner of the Bougainville Taxation Office Dr Alois Daton says his office will begin this awareness program in Buka this week with stakeholders in business, government and interested general public.
Dr Daton explained that these policies were developed following consultations in 2022 with the Internal Revenue Commission (IRC) where discussions were held on a wide range of taxation and revenue issues from sales tax on beer and cigarettes, goods and services tax and other taxes administered by the IRC, obligations of taxpayers, expectations of taxpayers and the taxation legal framework for Bougainville.
These consultations were also held with local business associations in North, Central and South Bougainville.
The first policy intervention covers the development of a taxation framework contextualized to Bougainville’s projected economic landscape.
Given the current slow growth of Bougainville’s economy, the proposed tax regime will have less taxes comprising of Goods and Services Tax, Personal Income Tax, Stamp Duties, Small Business Tax, Turnover Tax and a production levy for the mineral sector.
“This system will be designed for ease of administration and compliance, however to reduce the tax burden that the government will face, a number of business activities have been approved for government investment including a superannuation fund,” Daton said.
Dr Daton said that apart from this, a policy was also developed to combine all the functions of all tax and non-tax revenue agencies in the Bougainville Public Service.
“As Bougainville prepares for independence in 2025, it needs to have its own Revenue Authority administering the appropriate tax legislations to raise revenue to allow the Government to provide goods and services to its people,” he said.
“This service would house tax, customs, liquor licensing, road transport, motor vehicle inspection and investment promotion functions among others. It will also save costs and effectively use existing resources across these agencies.”
The awareness will also cover the approved policies on Fuel Products Tax, Tax Relief for beer and cigarette tax payers in Bougainville and Forgiveness of Tax Debt owed by Bougainville businesses.
Dr Daton said following the awareness consultations in Buka this week, his team will proceed to mainland Bougainville. The dates are as follows:
- Monday 22 May 2023: Tinputz District
- Tuesday 23 May 2023: Wakunai District
- Wednesday 24 May 2023: Arawa Town
- Thursday 25 May 2023: Buin District
- Friday 26 May 2023: Siwai District
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