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No Compliance on Tax at Gizo

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BY LIVETT MYRNE COMFORT

GIZO Based Inland Revenue Division is facing continuing setbacks in revenue collection for many years due to businesses not complying, less manpower, and no logistic support.

Senior Revenue Officer and Team Leader for Compliance and revenue collection Robert Mamupitu revealed that the ongoing challenge is “most people or business houses don’t want to comply, we have due dates but they don’t want to comply with the time frame.”

Mamupitu pointed out such practice has become inherent that it slows down revenue collection and the government not able to pay for services as well as causes delays in salaries.

He stressed that delay of salary payment is also an obvious factor that can lure public servants into corruption, as they may find other means to get money to sustain their livelihood.

“For us, in the inland revenue office, we only monitor the businesses to comply with paying up their dues

“So it is still a huge challenge for us here in the province, as we administer 26 types of taxes. The most common ones here include the Income-tax and the sales and goods taxes. These taxes are from business houses and the service providers.

“But as I said, compliance remains a challenge. Taxpayers must voluntarily comply, that’s an obligation to pay tax and support the government.” Mamupitu said.

According to inland revenues time frame monthly, due dates fall on the 15th, 20th, and 30th, for Pay As You Earn (PAYE Tax), Withholding Tax, and Goods and Sales Tax. The quarterly Tax due date is on the 20th of each quarter.

He explained that most do not voluntarily comply, but only a few. Voluntarily complying means taxpayers go to the inland revenue themselves to pay taxes before the due date.

“When you make business, you must know your Tax obligations and the due date. When they’re not coming to pay up, we approached them but many of them do not comply.”

“And also, we have challenges like less manpower and no logistic support. Here at Gizo, we don’t have OBM for transport to cover other places outside Gizo.” He said.

He said the Inland revenue department in the western province is also looking at establishing an office in Noro to increase revenue collection as more businesses in Noro.

“Soltuna alone has more than 1000 employees that we collect pay as you earn and income Tax from them, as well as from PKPL in Kolombangara.”

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