Consumers share comments on IRC’s GST Zero Rating policy rollout
The Government says its intention is to provide direct relief to consumers through GST Zero rating policy on essential household items including; baby diapers, tinned fish, cooking oil, biscuits, flour [wheat], chicken, instant noodles, coffee, tinned meat, rice, sanitary pads, soap [bar only] and tea.
The government, through the Internal Revenue Commission [IRC] ensures that this policy is in response to ongoing cost of living pressures.
NBC News has randomly reached out to individuals seeking their comments and reactions after City Pharmacy implemented the government’s policy directive effective immediately yesterday on the selected items.
Antoinette Poivi, a resident in Port Moresby said: “Well let's say CPL was honest enough to put out this notice and we hope the others do the same. Now, what I understand of this new GST zero rating of 13 essential goods is that only the GST component will be removed from the selling price of an item. If you come to think of it, it's not much of a change.
“I think the Government should be more practical with some of their decisions because this zero rating started yesterday and ends on June of next year makes no sense. Maybe increasing the minimum wage would make a bigger difference.”
Rachel Shisei from Lae, Morobe Province said GST Zero rating is a sigh of relief after a very tight budget because most can't avoid these basic items no matter the cost.
“Now the prices have dropped, we are able to budget for other necessity items or afford to get a service I personally wasn't able to before this.
“A typical PNG family household has around 8 to 10 people and a 10kg bag rice runs out within 3 days. Calculating how many bags of rice to provide for 2 weeks before the next fortnight is already depressing and that's just for rice so yes, thankfully breathing space has been created,” Shisei said.
Few others have raised concerns that it would be great for IRC to remove cash registers operated by shops that does not show the name of the item being purchased and the GST component.
They said shops using cash registers will make it difficult for consumers and IRC to know if the Zero rating is applied.
Arnold Patiken said: “Remove these cash registers and make it mandatory for shops to adopt cash registers that clearly list items bought with their price and the GST account written on the customer receipt.”
Meanwhile, the IRC urged all registered suppliers, retailers, and traders to adjust their pricing to reflect the zero-rating of GST on the listed goods.
The Compliance Enforcement will be conducted by the IRC, in close partnership with the Independent Consumer and Competition Commission [ICCC] and PNG Customs Service.
These agencies will monitor pricing behavior, investigate complaints, and take appropriate enforcement actions.
IRC also clarified that any failure to pass on the tax relief to consumers—whether by continuing to apply GST or by retaining prices at pre-zero-rating levels—will be treated as non-compliance with tax laws.
“Offenders will be subject to penalties under the Goods and Services Tax Act 2003 and other relevant laws.”
The GST Zero rating policy came into effect yesterday and will lapse on the 30th of June, 2026.