Committee recommends 5% reduction on CIT
Source: Loop PNG, November 22, 2015, 14:22
By FREDDY MOU
By FREDDY MOU
This will improve the competitiveness of the tax system and attract capital and grow investment, economic development and jobs.
The committee pointed out that increased economic activity would grow the tax base.
They (committee) stressed that currently the CIT 30% rate is at the high end for Asia- Pacific region and is hindering investment, innovation, and risk taking.
They also found out that the current rates places pressure on government for tax breaks sought by investors.
The committee says the existing corporate income tax base is being eroded.
“Despite the significant economic benefits of cross border trade and investment, globalisation has made it easier for companies to move profits to low tax countries.”
Therefore, the committee has strongly recommended that the government must implement the recommendations in the corporate income tax in the 2016 budget.
The committee pointed out that increased economic activity would grow the tax base.
They (committee) stressed that currently the CIT 30% rate is at the high end for Asia- Pacific region and is hindering investment, innovation, and risk taking.
They also found out that the current rates places pressure on government for tax breaks sought by investors.
The committee says the existing corporate income tax base is being eroded.
“Despite the significant economic benefits of cross border trade and investment, globalisation has made it easier for companies to move profits to low tax countries.”
Therefore, the committee has strongly recommended that the government must implement the recommendations in the corporate income tax in the 2016 budget.
Comments
Post a Comment