18 Oct 2012

Bougainville urges PNG to change tax arrangements

4:06 pm on 18 October 2012

The President of Papua New Guinea's Bougainville province says there's a need for fundamental changes to taxation arrangements handled by the national government.

The national government and the Autonomous Bougainville Government are in Kokopo in East New Britain for a joint supervisory body meeting.

President John Momis says the national bureaucracy is failing the province with the specific financial obligations laid out in the Peace Agreement not being met.

He estimates a loss of up to 9.5 million US dollars a year in uncollected income tax.

The President says there are also significant losses from the non-payment of stamp duty, improperly accounted for company tax and customs duties, while as much as 70 percent of good and services tax is not collected.

Mr Momis wants a review of whether the autonomy arrangements are workable or whether Bougainville needs to consider establishing a completely stand-alone revenue collection system.