Papua New Guinea: Unleashing the power of data

 

The PNG Internal Revenue Commission (IRC) celebrated a significant milestone in its journey toward a more advanced and efficient tax administration system as the Commissioner General Mr Sam Koim announce the launch of its Data Management Strategy, a pioneering initiative for IRC and, believe to be of the first of its kind in the public sector in PNG. The launch took place on August 9, 2023.

Recognizing data as a strategic asset, the IRC have undertaken this journey to monetize the data. The use of big data and data analytics has revolutionized the operations of tax administrations around the world, leading to significant improvements in tax revenue collection and overall effectiveness.

According to the Commissioner General, it became apparent that the IRC had not comprehended the full importance of the data at its disposal. This encompassed information derived from tax declarations and third-party sources, which the IRC had the rightful authority to acquire. The majority of this information was stored in physical records, leading to significant time consumption for analysis or conducting audits. This time-intensive process created a void in information, which unfortunately contributed to a thriving environment for tax evasion.

Learning from these experiences, the IRC have moved to establish a new Tax Intelligence Division and are recruiting experienced and fresh talents to be part of our data analytics team. The Data Management Strategy is an integral part of our broader Data-driven Strategic Pillar, which underpins our commitment to leveraging data as a strategic asset. This comprehensive strategy encompasses the entire data lifecycle, from collection to analysis and utilization. Our data-focused initiatives are intricately linked to our Strategic Pillar of Digital Transformation. We understand that the process of digitizing data and automating its integration and visualization relies entirely on the presence of digital tools. We are therefore taking measured steps to build a digital ecosystem with interoperable capabilities to ensure that data is transmitted and analysed seamlessly.

Benefits of Data other than raising tax revenues

1.    Data-Driven Decision Making: One of the primary objectives of our Data Management Strategy is to enhance our ability to make informed decisions and drive evidence-based policy-making. We want to move away from decisions being made on "feelings", "emotions", and "unfounded assumptions". Our resources are scarce against competing needs; hence we want to make productive investments in areas that really demand attention. For instance, we don't have all the resources to audit every taxpayer. However, with data insights, we can focus on taxpayers that pose the greatest risk to tax revenue. By adopting a data-driven approach, we can leverage advanced analytics and cutting-edge technologies to gain valuable insights into taxpayer behaviour, economic trends, and market dynamics. This knowledge will not only enable us to develop more effective tax policies but also contribute to broader socioeconomic development.

 

2.    Improving Taxpayer Services: This strategy will enable us to streamline our operations and optimize the delivery of our services. By leveraging data, we can automate routine tasks, reduce manual intervention, and expedite processes. This will result in improved efficiency, reduced administrative burden, and enhanced service delivery for taxpayers. Ultimately, our goal is to create a seamless and user-centric experience that fosters trust and satisfaction. This will complement our taxpayer services strategy, which is already being implemented.

 

3.    Improve Collaboration and Action: What we are building here at IRC will benefit not only IRC but other agencies of Government. The Data Management Strategy promotes collaboration and data sharing among government entities. By breaking down data silos and establishing robust mechanisms for interagency cooperation, we can harness the collective power of data assets across various sectors. This will facilitate a more comprehensive understanding of taxpayer activities, enable data-driven insights, and support coordinated policy interventions, not only in the taxation space but in other areas of governance. For instance, during and after Covid, we did not know for sure how many workers were laid off and how many were reemployed. IRC can help address that.

 

4.    Efficient Government: data-driven decisions and timely interventions can fuel the efficiency of the overall Government. Sometimes the lack of data keeps us in the valley of decision-making for too long, and we act too little or too late.

Our Data Management Strategy includes stringent protocols and safeguards to ensure that data is handled with the utmost care and in compliance with relevant laws and regulations.

 

By - Marilyn Watuna, Director, Internal Revenue Commission, PNGIRC

 

 

Marilyn Watuna