Juffa calls for review of tax policy to empower provinces

Northern Governor Gary Juffa has urged the national government to review the country’s tax policy, arguing that the current system unfairly benefits major centres while depriving smaller provinces of much-needed revenue.

Speaking in Parliament recently, Governor Juffa said the current tax ratio was unrealistic and irrelevant, stating that it mostly benefits Lae and Port Moresby, where many companies are headquartered.

“I would propose that 100 percent be given to the small provinces, the small economies,” Juffa said. “A bulk of the GST returns are collected in Lae and Port Moresby, but very little actually makes it to the provinces. Allow the provinces to collect their own taxes, and those taxes can then fund their districts, stations, water, power and law and order.”

He said the present arrangement leaves provincial governments starved of resources, forcing them to rely heavily on Waigani. “Right now there are no funds going to the districts and stations. That’s why all the money comes to town and sits here,” he said.

Juffa also raised concerns about oil and gas projects, stressing the need for fair consultation with all stakeholders and greater provincial participation in decision-making.

He called on the national government to decentralise certain responsibilities and give provinces more control over revenue to drive local development.