NCDC TO STOP REVENUE CUT
The City Hall will seek a permanent court order to stop the announcement of Goods and Services Tax slice.
General Commissioner for Internal Revenue Commission, Sam Koim announced today in a media statement he chose to slice 60 percent of NCDC’s GST revenue.
Then, he said, of that, he would distribute 10 percent to the Central Province, 3 percent to Gulf and 2 for Motu Koitabu Assembly. https://postcourier.com.pg/ncd-unobligated-to-pay-central-tax/
Responding to the decision by Koim, NCD Governor Powes Parkop said his government would seek a Supreme Court order to stop it.
NCD GOVERNOR POWES PARKOP’S RESPONSE TO KOIM
He said these are the very issues resolved previously through a Supreme Court decision.
The decision by Koim, he said, is in breach of a Supreme Court decision.
NCDC will also press contempt charge against Koim and others, he said.
We might consider contempt of court charges too but we decide that later. Right now we have instructed our lawyers to apply for permanent stay or injunction.
Governor Parkop
FACTS ABOUT THE GST ARRANGEMENT
The pertinent facts, Governor Parkop said, are:
- Supreme Court already ruled that NCDC is not obliged to pay Central Provincial Govt any share of its GST grant
- NCDC has never breach its legal obligations under the law in respect of paying grants to Central Provincial Govt.
- IRC is required to pay Central Provincial Govt its share of GST but NOT from NCDC component.
- NCDC only gets 60 percent of what is known as inland GST
The Commissioner General’s decision therefore is illegal as it is contrary to the ruling and findings of the Supreme Court, he said.
Contrary to his claim, we have breached no law and the Supreme Court has made that finding.The Supreme Court is the highest Court of the land. It gave equal opportunity to all parties to prepare and address the Court on all these issues. It had made a ruling after hearing everyone including IRC and Central Provincial Government. This decision by Mr Koim is the one that is illegal and immoral. We will apply for permanent injunction.
NCD Governor Hon. Powes Parkop, LLB, LLM, MP
KOIM’S DECISION IN BREACH OF SUPREME COURT DECISION
It is a total breach of Supreme Court orders. National Government gets 40 percent of what is known as inland GST and 100 percent GST from airport and seaport. It’s get massive revenue from corporate tax and income tax from corporate and individuals in the City. It gets revenue from Eda Ranu, Ports PNG and all State own enterprises from the City. It shares all these with the Province including Central and Gulf Provinces already.
The Supreme Court has made the decision that the 10 percent GST due to Central Province comes for what National Government gets from the GST in the City. That’s what Commissioner General of IRC should be doing. NCDC annual budget is around K300 million. It is same at Morobe Province, SHP, Hela and some other Provinces. We have no advantage over others but we have a population of over a million and we have to deliver services every day like collecting rubbish, cleaning city, building roads and maintaining them, managing markets, providing security and police services etc… many other services which many Provincial Governments don’t do on a daily basis.
Hon. Governor Powes Parkop
The City of this size in global comparison needs a budget of over K1 billion to really run and manage. We have to get loans all the time from within and abroad to deliver many of the outcomes we have achieved for the City. The income we have is totally inadequate and we are a City and a Government that delivers.
Governor Parkop
