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Much Ado About Nothign

In: English and Literature

Submitted By stardivya
Words 660
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ECONOMICS SCRIPT
Sara: Today we are going to be talking about taxation in Papua New Guinea
Divya: To start off, here are a few facts about Papua New Guinea (Read the facts)
Sara: Okay, so, Papua New Guinea, just like other countries, have different types of taxes, some being (read of the board)
Divya: But today we are going to be focusing on three different types of tax which are (read of the board)
Sara: So Stamp duty, well what is it? Stamp duty tax is for people who purchase real property (house or land) they must pay a certain amount of tax on that purchase. The amount of tax they have to pay, is calculated using the market value of the property.
Divya: Next we have GST, or also known as goods and services tax or even VAT in the UK! What is it? Well, GST is a tax, which is imposed on the sale of goods and services or the importation of goods. In Papua New Guinea GST is imposed at a rate of 10% of the value of the goods and services sold or imported. Businesses which sell goods or services, collect their GST and also pay it to the Internal Revenue Commission. The GST does not include the tax the business was charged on purchasing supplies. This GST goes to the supplier. Unlike income tax or salary and wages tax, where tax is calculated on earnings. GST is a consumption tax that is added to the selling price (including profit) of goods and services.
Sara: Lastly we have Income Tax. All residence of Papua New Guinea are liable to income tax. This includes individuals and companies). For residence the amount of tax they pay is determined by their world-wide income, whereas, for non-residence, the amount of tax paid is determined by their Papua New Guinea income.
Divya: in order for the govt. to calculate the amount of tax, in broad terms, they need to know three figures. The first one being Assessable Income, then they need to know Taxable income and

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