PNG CUSTOMS EXCEEDS BUDGET PROJECTIONS BY K500 MILLION IN TAX REVENUE COLLECTIONS

 PNG CUSTOMS EXCEEDS BUDGET PROJECTIONS BY K500 MILLION IN TAX REVENUE COLLECTIONS

It gives me great pleasure to announce that PNG Customs Service collected K465 million plus (14%) in tax revenues in excess of its supplementary budget target of K3,077.78 million for fiscal year 2022 as at week ending 16th  December 2022. This figure also included log and fuel levies collected. This amount is set to increase up to more than K500 million in excess of the budget target when collections for the remaining two weeks are added.

This is unprecedented and a great achievement for PNG Customs as it is the highest surplus revenue that Customs has ever collected to date in a single year compared to other years when Customs also exceeded revenue projections. We commenced the year with the theme ‘2022 The Year of Elevation’ aimed at sustaining and building on from the success in the 2021 financial year. This provided the impetus and drove us to achieve this great growth result.

The K3,502.80 million collected so far comprises of K2,242.63 million collected from import duties, export tax and excise duties and remitted to the Waigani Public Account and K1,260.17 million collected from Import Goods and Services Tax and remitted to the Internal Revenue Commission.

Compared to previous years' collection, PNG Customs recorded a substantial revenue growth of 14% or K465 million. This growth trend in collection is very encouraging and comes at a back of strong enforcement and compliance activities done by PNG Customs. We collected more than K20 million in penalties alone last year 2021. This year, we collected more than K10 million in penalties. This signifies the great efforts we put in strengthening compliance through strong enforcement and compliance activities.

Customs has performed strongly this year despite economic turbulences inflicted by remnants of Covid-19 and the effects of the Russia-Ukraine conflict which ultimately led to the Government approving a tax relief policy package to assist local businesses and families cope with the rising cost of goods and services. The tax relief package is estimated to have cut back on Customs excise duty by K200.5 million and Import GST by K130 million, which was successfully facilitated and implemented by Customs.

Despite those challenges and operating with only 48% of the manpower required, the good governance and various interventions undertaken to strengthen cargo control, compliance and enforcement activities, provided us the leverage for resilience and strong growth results in 2022.

The stringent control measures on cargo accountability, backed up by compliance and enforcement activities  that  we  undertook  had  immensely  strengthened  industry  compliance  leading  to  an increase in revenue collection.

We are looking forward to a greater outlook for 2023 as we implement the new Customs Strategic Plan 2023–2027, which focuses on renewed approach to strengthening and modernizing the fundamentals of Customs for sustainable resilience and growth into the future.

The Management and Staff of PNG Customs join me in conveying our profound thanks to the Marape–Rosso Government for their unwavering support for the financial year 2022. We renew to the Government and the people of Papua New Guinea our assurances of highest commitment and consideration in supporting the Government fund the 2023 Budget coming next year as we secure our border and promote sustainable legitimate trade and investment in our country.

I attribute the strong performance and growth to the hardworking Customs Management and Staff, and extend my special thanks to the families of the Customs officers for their support and wish them a safe and enjoyable festive season.

Authorized by

David Towe

Chief Commissioner of Customs