IRC SLICES NCDC’S GST REVENUE FOR CPG, GPG AND MKA

Statement by Sam Koim | Sunday Bulletin | Thu 22 April 2021

IRC slices NCDC’s GST revenue.

Today I have made the decision, after giving some considerable thought, to slice the GST pie that goes to the National Capital District Commission (NCDC) in accordance with section 33(2) of the National Capital District Commission Act 2001 (as amended).

Under this provision, IRC was mandatorily required to distribute directly, from the 60% due to NCDC, to Central Provincial Government (10%), Gulf Provincial Government (3%) and Motu Koitabu Assembly (2%).

We have been remitting everything to NCDC, hoping that NCDC would do the right thing. Over the years, however, NCDC had been at best inconsistent, at worst, arrogant, in providing what is due to the people of Central, Gulf and Motu Koitabu.

This has resulted in countless and costly court proceedings where IRC was also dragged in.

Immediately after taking office, I invited Governor for NCD and the Governor for Central to a meeting where we reached an understanding on the way forward.

Despite the best of efforts, we seem to be getting nowhere. The people who are supposed to benefit from the funds are suffering in the meantime.

I believe it is the intention of the Legislature to avoid such a deadlock and whimsical arrangement by authorising IRC to make direct payments on account of NCDC. I believe it is fair and right to do what I am doing today to avoid further tensions and unnecessary court proceedings.

The leaders who are heading the subnational governments are legislatures and if they want the law to be interpreted or applied differently, they should go to Parliament and change the law. But as a responsible administrative head of this organisation, I am applying the law as it is.

Authorised for Release,

Sam Koim, OBE

Commissioner General

Internal Revenue Commission

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