The Internal Revenue Commission (IRC) and the Australian National University are partnering to strengthen revenue collection across Papua New Guinea by increasing the IRC’s understanding of how to communicate with taxpayers.
At a one-day workshop facilitated by the Australian National University (ANU), with support from the Australian Government, officials from the IRC learned how to target messaging to taxpayers to increase the collection of tax revenue, which can be then invested in government service delivery.
ANU Associate Professor Mathias Sinning says communications to taxpayers must be simple and convey a sense of social responsibility.
Christopher Hoy, also from the ANU, says the tools used by IRC to advise taxpayers of their tax obligations can be adjusted once they understand how and why people respond in certain ways. “There are behavioural reasons why people do not pay taxes on time or at all. We need to understand these behaviours and address them.”
IRC Director Southern Region, Warren Auka participated in the workshop to understand how taxpayers can be influenced to understand the importance of paying tax and change their behaviour.
“Increases in tax generation will depend on taxpayers’ response or feedback should IRC choose to adopt these new messaging mechanisms. The IRC collects almost 80 per cent of government revenue that is used for the development of the country, and thus it is important that people and businesses comply with tax requirements for a better PNG,” he said.
The IRC is already investing in a range of messaging strategies to boost tax compliance, such as public awareness campaigns using billboard advertisements. These activities will be adapted depending on testing of effective messaging in Papua New Guinea.
The workshop was supported by the Australian Government in partnership with the Government of Papua New Guinea to strengthen revenue for the development of Papua New Guinea.
For further information, including access to related materials, please contact the Australian High Commission media team: +675 7090 0100
Australian National University academic Chris Hoy discusses tax compliance strategies with staff from the Internal Revenue Commission.