The Internal Revenue Commission (IRC) and the Central Provincial Government (CPG) have reinforced their strategic partnership following a successful two-day engagement in Kwikila, Central Province.
The high-level meeting, held from 8–9 June 2026, aimed at strengthening tax compliance, enhancing revenue mobilisation, and improving service delivery outcomes for the people of Central Province.
It was attended by Acting Commissioner General Mr. Sam Loi, Central Deputy Provincial Administrator Mr. Bala Kapa, Chief Executive Officer (CEO) Rigo District Development Authority Mr. Murray Konido, Senior Magistrate Ms. Nancy Lipai, and senior officials from IRC, CPG, and the Rigo District Development Authority (DDA).
The discussions were centred on deepening cooperation between IRC and CPG through a review of the existing Memorandum of Understanding (MoU), establishment of structured quarterly engagements, and allocation of office space for the IRC Central Provincial Manager within the Provincial Administration.
Both parties agreed on the need for a strengthened and more operationally focused MoU to guide collaboration. The revised MoU is expected to be formally executed by 23rd June 2026, providing a framework for improved coordination, accountability, and implementation of joint initiatives.
Driving GST Compliance and Revenue Growth; A key focus of the engagement was the implementation of Section 65A GST withholding arrangements, which are expected to significantly enhance compliance, improve revenue collection, and promote transparency in the utilisation of public funds.
The IRC–CPG partnership on GST has progressively strengthened since its inception in 2023, with notable advancements in 2024 and 2025 through improved information sharing and coordinated enforcement efforts.
A highlight of the meeting was the presentation of a GST remittance cheque for May by the Rigo District Development Authority (DDA), demonstrating practical compliance under Section 65A.
Rigo District continues to establish itself as a benchmark in compliance performance. Between 2023 and 2025, the district achieved an 87% compliance rate, increasing to 97% in 2025, while Central Province recorded an overall compliance level of 98%.
Full compliance with Section 65A presents significant fiscal potential, with projections indicating a 37% increase in internally generated revenue from GST by 2027, enabling expanded funding for essential services and development priorities.
Acting Commissioner General Mr. Sam Loi emphasised the strategic importance of GST as a sustainable revenue stream.
“GST must become the primary revenue source for both the National and Provincial Governments. When provinces actively support effective GST collection, they will generate sufficient revenue to fund their own priorities and progressively reduce dependence on national government grants.”
He further urged all withholding entities across provinces and District Development Authorities to emulate the strong compliance demonstrated by Rigo DDA and the Central Provincial Government.
In closing, Deputy Provincial Administrator Mr. Bala Kapa reaffirmed CPG’s commitment to:
- Finalising and signing the MoU by 23 June 2026
- Providing office space for IRC within the Provincial Administration
- Supporting the full implementation of Section 65A GST measures
Mr. Kapa underscored the importance of proximity in service delivery: “We welcome IRC closer to our people, because service improves when we work side by side.”
He further acknowledged the IRC technical team’s support in taxpayer mapping and compliance initiatives, noting that the partnership continues to strengthen provincial administration capacity.
Both IRC and CPG reaffirmed their joint commitment to translate agreements into concrete actions, with a clear roadmap focused on strengthening GST compliance, boosting revenue performance, and delivering tangible benefits to the people of Central Province.
