Papua New Guinea’s Internal Revenue Commission (IRC) has ramped up its tax compliance campaign, aiming to close gaps between registered taxpayers and actual revenue collection. The announcement came in March 2025, when the IRC revealed plans to conduct targeted audits across multiple sectors.
IRC Commissioner General Sam Koim said that while revenue collection has improved, compliance among both local and foreign investors remains uneven. “We are committed to creating a level playing field. Those who are not complying with their tax obligations will be held accountable,” he stated.
A core part of the IRC’s approach involves sector-based compliance reviews and real-time monitoring of tax obligations using enhanced digital systems. The agency also plans to increase collaboration with investment authorities and border control to ensure accurate declarations of imports and taxable income.
The compliance drive also includes the use of data analytics to flag underreporting and detect discrepancies in GST, corporate income tax, and personal income declarations. Businesses in the retail, construction, mining, and consultancy sectors have been identified as focus areas for upcoming audits.
Industry groups have welcomed the transparency of the IRC’s approach but expressed concern over audit readiness and inconsistent recordkeeping, particularly among SMEs. Koim urged businesses to seek professional tax advice and take advantage of the commission’s self-assessment options.
In parallel, the IRC is offering temporary amnesty for certain late filers and encouraging voluntary disclosures. This initiative is part of a broader push to improve the country’s tax-to-GDP ratio, currently hovering around 13per cent, well below the regional average.
