Public and Private entities support UNRE's new Entrepreneurship module

The newly introduced module A413D Entrepreneurship, which is being taught to Year 4 PNG UNRE students is progressing well.

It has received overwhelming support from business houses and government organizations in the province.

The students have been privileged to have representatives from organisations in both the private and public sector deliver lectures to them about the concept of entrepreneurship, entrepreneurial behaviour, successful initiatives and entrepreneurship frameworks.

Earlier this month, managers of the National Development Bank (NDB) and the Internal Revenue Commission (IRC) made separate presentations on the types of services they provide to people who are interested in establishing businesses.

NDB Branch Manager Edward Elliot said in his presentation that he believed the module would help students be self-reliant and good business people.

He said NDB aims to see Papua New Guineans working to build the nation and encouraged them to do something within their mental capability if they were thinking of starting their own business.

Mr Elliot told students what a loan is and its effects on a business; the components of a good loan; the responsibilities of a borrower; and lending requirements.

He stressed that they must avoid using their business income for personal use such as assisting wantoks or paying other obligations.

Mr Elliot said the two important bodies to consider when doing business are: Investment Promotion Authority (IPA) and Internal Revenue Commission (IRC).

“A business is considered legal when it is registered and tax is paid,” he said.

Meanwhile, IRC Regional Manager (NGI), Igo Morea, explained to students the importance of paying tax.

He said the role of any government is to protect the safety and wellbeing of its citizens and the country’s sovereignty.

“The National government’s responsibility is to make sure that all its citizens benefit from agencies and programs it has created.”

Therefore, he said there are four main ways the National Government earns its revenue in order to fund those programs such as: education, health, infrastructure, law and order, etc.

The four revenue sources are: Taxation (which makes 70% of the government budget), Loans and Grants; Dividends; and Domestic Finances.

Mr Morea said that it is important that the students understand this when they are doing business.

He said for any business to operate legally in PNG it is required by law to register with IPA and IRC. Under IPA the business can be registered either as a company or under a business name. Once an IPA certificate is received, the business owner can approach IRC to register for a Taxpayer Identification Number (TIN).

Mr Morea said without a TIN, the banks would not open a business account.

He further explained that the tax a business pays is calculated upon its net profit.

“IRC encourages business to prosper following the laws of the country,” he said.

“Companies pay a tax of 30% according to the net profit they make and for individual business, if the net profit does not exceed K10,000 they have no tax to pay.”