Interview with Commissioner General Sam Koim

Internal Revenue Commission (IRC), Papua New Guinea

Interviewer: We are here in Port Moresby, the capital of Papua New Guinea, with Commissioner General Sam Koim. Thank you for taking the time to speak with us.

Before moving forward with the Goods Monitoring System (GMS), what were some of the key challenges the Internal Revenue Commission faced in tax compliance, reporting, and revenue collection?

Commissioner General Sam Koim: We faced a number of significant challenges.

First, our strategic vision is to make GST the government's largest source of revenue. At present, salary and wages tax is our biggest revenue earner, followed by corporate income tax, with GST ranking third.

To achieve our goal, we recognised that we first had to address serious underreporting and underpayment of GST.

Many businesses still rely on outdated point-of-sale systems that are not fully digital. Reporting is largely manual, with paper receipts and physical invoices. At the same time, Papua New Guinea has a substantial informal economy, making compliance even more difficult.

Without an integrated digital system, achieving our revenue objectives would be extremely challenging.

During tax audits, taxpayers often tell us that invoices are missing, incomplete, or unavailable. In some cases, invoices have been altered. Physical receipts also deteriorate over time, making verification difficult. Reviewing paper records is both cumbersome and labour-intensive.

These were the key challenges that led us to embark on this transformation.

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Interviewer: Other countries in the Pacific have already implemented digital monitoring systems. What lessons from those experiences—particularly Fiji's—have influenced Papua New Guinea's approach?

Commissioner General Sam Koim: We've learned a great deal from Fiji through our bilateral discussions and ongoing collaboration.

We've studied both their successes and the challenges they encountered during implementation.

One of our biggest takeaways is the importance of stakeholder engagement. Gaining the support of businesses, retailers, and taxpayers is essential. Public awareness and education are critical to ensuring successful implementation, and that is one of the most valuable lessons we've taken from Fiji.

We've also observed the significant increase in revenue that Fiji achieved after introducing its system, and naturally we hope to realise similar outcomes.

Another important lesson relates to data utilisation.

Although Fiji began collecting real-time transaction data early in the implementation, they initially lacked a dedicated tax intelligence function to fully leverage that information.

We have prepared differently.

Ahead of implementation, we established a Data Analytics and Tax Intelligence Division and recruited specialised personnel. We've deliberately built our internal capability so that, from day one, we can analyse real-time data, generate insights, strengthen compliance, and improve tax administration.

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Interviewer: If you could share one message with your taxpayers and businesses about the benefits of the Goods Monitoring System, what would it be?

Commissioner General Sam Koim: There are many benefits.

Once the system is fully implemented, businesses will no longer have to go through the tedious process of locating and producing physical receipts and invoices during audits because the tax administration will already have the necessary transaction data.

This will make compliance much easier.

The system will also create a fairer process. Without accurate information, tax authorities sometimes have to make assessments based on limited evidence, which can result in disputes or penalties.

With real-time digital data, the process becomes more transparent and objective.

Equally important, the system creates a level playing field.

Businesses that already comply with their tax obligations should not be disadvantaged compared with those that do not. The Goods Monitoring System ensures that everyone is subject to the same standards, making the business environment fairer for all.

Looking further ahead, this is also an important step toward pre-filled tax returns.

Our long-term vision is for the tax administration to prepare much of the taxpayer's return automatically using the transaction data already available. This is a future-oriented goal, but implementing the Goods Monitoring System is a critical first step.

I encourage every business to work with us. This transformation serves both the interests of taxpayers and the tax administration, and together we can achieve these outcomes.

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Interviewer: Since taking office, you've led a significant programme of fiscal transformation and reform. Looking ahead, what excites you most about the future of the Internal Revenue Commission? What do you hope your legacy will be?

Commissioner General Sam Koim: The Internal Revenue Commission that I envision is an organisation where systems work together, processes are integrated, and people operate in complete synergy to deliver their best performance.

I want to see every taxpayer brought into the tax system and paying the correct amount of tax.

Our objective is not for taxpayers to pay more tax—it is for them to pay the right amount.

Likewise, our goal is not to tax more, but to tax correctly.

When everyone participates in the tax system and administration is supported by efficient digital processes, we create a genuine level playing field. Everyone contributes fairly, everyone shares the burden, and government can be confident that the tax base is complete.

That, in turn, supports the country's broader development goals and national aspirations.

Ultimately, I want the Internal Revenue Commission to become the best-run public sector organisation in Papua New Guinea—and indeed in the Pacific—as these reforms come to fruition.

That is the future I am working toward.

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Interviewer: Thank you very much for allowing DataTech International and TaxCore to be part of that vision.

Commissioner General Sam Koim: Thank you.