PEA urges delay in new income tax rollout

The government has been urged to delay the rollout of the new Income Tax, which is expected to come into effect this year.

Public Employees Association General Secretary, Ugwalubu Mowana, says workers across the country need more time to properly understand how the new tax will affect them.

The new tax law has drawn strong criticism from workers and unions, who say there was not enough consultation before it was introduced.

Mr Mowana is now calling on the government to pause the implementation, allowing time for clearer explanations and wider awareness among workers before the tax takes effect.

The P-E-A General Secretary fears that the new tax will affect salaries and allowances of workers throughout the country.

Amid public criticism, Acting Commissioner General of the Internal Revenue Commission, Sam Loi, clarified that the new Income Tax Act is aimed at modernising the system, not reducing the take-home pay of ordinary Papua New Guineans.

Unions have warned the government to be careful if it plans to increase income tax this year, stressing the need for clear communication before implementation.