140524 BTO to complete tax legal framework
New Dawn FM News

The Bougainville Tax office is continuing work into the taxation legal framework in the region.
According to Chief Tax officer Dr Alois Daton, BTO has agreed on the five tax laws to adopt from PNG laws.
BTO sought advice from the Internal Revenue Commission (IRC) to draft our own tax due to no law drafters in country.
“IRC has now linked World Bank (WB) to provide technical assistance by engaging a legal draftsman Professor Lee Burns, an Australian to assist ABG and BTO to draft our own tax laws,” he says.
He says the Professor Lee has been instrumental in drafting laws for small Pacific Island countries similarly to Bougainville.
“Prof Lee’s experience in the Pacific has been deemed a suitable candidate to also assist the ABG’s Tax office,” he adds.
Due to continuous consultations between BTO, IRC and World Bank, five pieces of legislations has been approved and a timeframe set to draft the laws.
“By 31st of July 2024, World Bank will have completed 1: first legislation of Personal Income Tax (PIT) completed by 1st Aug and reviewed on 30th Sept 2024; 2: Goods & Services Tax (GST), ;3.Departure Tax (DT), both first draft by 31st of Aug 2024 and reviewed in Oct; 4. Corporate Income Tax (CIT); and 5. Small Business Tax (SBT) to be completed by November and reviewed on 31st December, 2024 and finalised.
“ABG to review first draft of the Tax Administration Act; five tax laws on PIT, GST, DT, CIT and SBT by 28th of February 2025.
“The laws will then be debated on the floor of Bougainville House of Representatives (BHOR) and should be endorsed by Bougainville Executive Council (BEC),” he added.
Daton further added that consultations will follow from the January to May 2025.
He further added that Sales Tax alone is not sufficient to raise internal revenue and therefore the office is working to adopt five new laws to assist in revenue collection.
Recent Joint Technical Team (JTT) recommended the ABG transfer of tax laws to be managed by itself.
ABG hopes to create a central registry under the Department of Commerce, Trade and Economic Development to support tax regime. ENDS////AK