The price inspection on the thirteen (13) household items exempted from the ten percent (10%) Goods and Services Tax (GST) under the government’s zero-rating policy, has found multiple breaches to this policy in the Highlands Region.
The operation, led by the Internal Revenue Commission (IRC) in strategic collaboration with the Independent Consumer and Competitions Commission (ICCC) and the Papua New Guinea (PNG) Customs Services, was launched recently in Goroka in Eastern Highlands province with inspections targeting retail outlets selling the 13 designated zero-rated items.
Preliminary findings from this inspection revealed multiple breaches. Several retailers (shops) were found to be charging GST on items officially listed as zero-rated. In response, formal warning notices were issued, instructing immediate rectification of pricing and the Point of Sale (POS) configurations, and non-compliance will attract escalated enforcement measures, including financial penalties and potential prosecution.
IRC Commissioner General Mr. Sam Koim said these beaches are unacceptable as these retail shops are continuing to charge high prices to customers on those basic household items that their government has exempted tax from already.
“We will not tolerate deliberate profiteering at the expense of households. Businesses who fail to comply will face the full force of the law, including financial penalties and prosecution,” Mr. Koim strongly stated.
As per the campaign, inspection teams conducted rigorous checks on:
– Retail pricing structures, to verify that GST was not erroneously
applied
– POS systems, to ensure correct tax coding and transaction accuracy
Meanwhile, this inspection campaign will extend to other Highlands provinces in the coming weeks. The IRC and its partner agencies remain resolute that retailers who persist in undermining the zero-rating policy will face decisive action.
The zero-rating of essential goods is a deliberate government intervention to ease cost-of-living pressures. Its integrity must be upheld.
The IRC calls on all retailers to comply fully and ensure their systems reflect the correct GST status of affected goods.