SAMOA, June 23 - MCR’s REVENUE COLLECTION ON TARGET

By Nanai Taofiga Laveitiga Tuiletufuga

Except for Fiscal Year 2017-2018, the Ministry of Customs and Revenue, (MCR) have surpassed her yearly revenue collection projection dictated by the Budget in the last 5 consecutive fiscal years.

And for the current fiscal year which ends next week Tuesday, Revenue Minister Tialavea Fea Leniu Tionisio Hunt has assured Parliament that the MCR will also meet its revenue projections.

“From July 1st 2019 to May 31st 2020, MCR collected $505 million leaving a little over $20 million to overcome the $$527 million revenue collection budgeted for the current fiscal year. “And I have been assured by the Ministry that as of today, we have again passed our revenue target for this fiscal year,” Tialavea announced in the House Wednesday.

Also noted by the Chief tax collector, the MCR has amassed over $40 million tala in excess revenues for the Government coffers since fiscal year 2015-2016.

The budgeted and revenues collected data were tabled in parliament by the Minister and are as follows; • FY 2015-2016 • Budgeted; $479 million • Collected: $485 million • $6 million excess

• FY 2016-2017 • Budgeted; $491 million • Collected: $498 million • $7 million excess • • FY 2017-2018 • Budgeted; $522 million • Collected: $507 million • $14 million shortfall • • FY 2018-2019 • Budgeted; $530 million • Collected: $551 million • $21 million excess • • FY 2019-2020 • Budgeted; $527 million • Collected: $505 million (as of 31st May 2020.)

Tialavea attributes the upbeat revenue collection to his Chief Executive Matafeo Avalisa Viali-Fautuaalii and her staffs’ diligence in executing new reforms.

“Under the CEO’s leadership, MOR has strengthened revenue collection, through a thorough review of compliance measures to ensure everyone is paying their fair share of tax.

“This,” says the Minister “has helped MCR to retain the tax burden as low as possible while raising the revenue we need.” For the same reason, the Ministry has silently but effectively reviewed exemptions, concessions and taxation arrangements to ensure they are in compliance and to eliminate attempts to unfairly avoid paying tax.

Unpaid taxes from past years have also come under the microscope.

Tax credits also came under MCR scrutiny to ensure that revenues are spent in line with our national priorities. He said that the government approach is to identify responsible and affordable measures to raise additional revenue and find savings from within Ministries and Agencies, while protecting front line delivery of services.

And to tighten revenue collection MCR will be enforcing her new Tax Invoice Monitoring System, (TIMS) July at 2020. The initiative will allow businesses’ to calculate their tax obligations.

The initiative is part of the Government’s broader goal of increasing tax compliance and tackling the hidden economy and tax evasion.

TIMS will also enhance domestic revenue collection and create an equal playing field for all taxpayers and provide verification of each of their transaction.

It is intended to reduce reliance on hard copy invoices and receipts and therefore lessen industry’s record keeping costs. “The consumers and public will also play a leading role, explained the Revenue Minister urging for a receipt for every purchase made.

“Demand a receipt of purchase. If you don’t then you are helping [non-compliant businesses] disobey the law,” he said. “It is an advantage for businesses which are compliant taxpayers from having to compete with businesses who evade taxes and can sell their products at significantly lower prices.”

“At the end the day, it’s not just paying taxes owed to government as prescribed by law but also avoiding any new tax increase that will burden the entire country for the sake of irresponsible taxpayers looking for ways to avoid paying their dues,” the Minister concluded.

June 26, 2020