NO PERSONAL INCOME TAX RISE FOR 2026: IRC

THE Internal Revenue Commission has reassured Papua New Guineans that the new Income Tax Act 2025 will not increase personal income tax rates.

Acting Commissioner General, Sam Loi, says the legislation is aimed at modernising the tax system, not reducing the take-home pay of workers.

Mr. Loi emphasises that the IRC is taking a practical and measured approach, listening closely to concerns from employees, unions and employers. He says guidance notes and explanatory materials will be released ahead of 1 January 2026 to ensure everyone understands the changes.

A transition period from 1 January to 31 March 2026 has also been confirmed. This will give businesses and employees time to adjust their systems and processes and employers acting in good faith will not face unfair penalties during this time.

The Acting Commissioner General urges workers and employers to rely only on official IRC information, warning that misinformation can cause unnecessary anxiety. He stresses that fairness, stability and transparency remain the Commission’s top priorities as PNG moves toward a modernised tax system.