By ELIAS LARI, the National PNG
THE Internal Revenue Commission and the Western Highlands provincial government signed a memorandum of understanding on Thursday to improve tax compliance and increase internal revenue.
The agreemenrt was signed by the Internal Revenue Commission (IRC) Commissioner General Betty Palaso and provincial administrator Joseph Neng in Mt Hagen.
Neng said the deal will help increase revenue for service delivery.
“IRC has been very good to us. It has been supportive in giving us funds to help in our operation,” Neng said. He said internal revenue depends on the IRC collection and that helps to maintain and extend service delivery.
Meanwhile, Neng has raised his concerns about companies in Mt Hagen and the province not paying tax. He said taxes that are supposed to be collected are not being collected.
Palaso said Western Highland is the first Highlands province to sign the agreement with Inland Revenue.
She said the agreement will improve tax compliance and increase revenue for the provincial government.
She said the provincial government supported the IRC Mt Hagen office with the purchase of vehicles.
Palaso said the Western Highlands provincial government receives revenue from IRC through the Goods Service Tax .
“But this will increase with the MoU in place and we will also work around to see which company is not paying tax.”