IRC to make GST main source of revenue collection commencing 2025 beyond
Internal Revenue Commissioner General Sam Koim recently announced record K17.3 billion revenue target of 2024 met prior to the scheduled date and indicates IRC’s focus towards meeting 2025 revenue target of K19.4 billion [14% increase from the 2024 target].
Commissioner Koim said in order to achieve this target they will digitize various streams of revenue collection and also increase the manpower which will also require appropriate funding support from the government.
He said in the 2025 national budget passed in November this year; government increased IRC’s budget from K62 million to K100 million [increase by K38 million].
“Now the government has increased the budget we are going to do recruit more. First 60 positions out for recruitment and we are also trialing out our new system to do online. We are doing everything we want to do online and automated to meet the revenue target, we might reach K20 billion, who knows,” Koim said.
Commissioner General Koim further stressed that main source of revenue targets they are looking at is on Goods and Services Tax [GST] through the Goods and Services Monitoring system.
“The government has allocated funding for this initiative and approved its procurement. IRC is finalizing the contract and simultaneously developing implementation strategies and roadmaps for the system.
"Once the GST collection system is fully operational, the IRC plans to recommend to the government tp reduce wages and salary taxes. Any revenue loss from this reduction will be recovered through GST," Koim said.
According to Koim, the Goods and Services Monitoring system will be rolled out to critical platforms, including cash registers, point-of-sale systems, and Enterprise Resource Planning [ERP] systems, to ensure efficient GST collection.
Additionally, a similar system is already in place within the government’s Integrated Financial Management System [IFMS] to facilitate the direct remittance of GST collected by government contractors to the IRC.
The IRC is also extending the GSMS to the private sector, targeting ERP systems to broaden the GST collection base.
Meanwhile since 2020 Internal Revenue Commission [IRC] has been declared as hero of productivity, collecting K65 billion in total revenue.
Few days ago, IRC celebrated 65th anniversary, reflecting back to its beginnings since 1960 when IRC collected revenue from British pound, then transitioned to Australian dollars, anchored both and switched to Kina since 1975 and will still collect in Kina going forward.