The numbers are sobering but not yet catastrophic. On Tuesday the IMF released its latest World Economic Outlook. Global growth this year is now projected at 3.1%, down from the 3.4% that chief economist Pierre-Olivier Gourinchas had been ready to announce before hostilities erupted on February 28th. Oil flows through the Strait of Hormuz have fallen by about 13%, liquefied natural gas by 20%. Brent crude spiked to $120 a barrel before easing; diesel and jet-fuel shortages have rippled through supply chains all the way to the Pacific islands. Headline inflation is expected to rise to 4.4%, some 0.6 percentage points above January’s forecast. 

Growth Outlook Changed

“We were planning to upgrade growth for 2026 to 3.4%,” Mr Gourinchas told reporters, “if not for the war.” Nevertheless, he also pointed to a source of resilience the world lacked in the 1970s: far lower oil dependence, more renewables and nuclear power, and greater efficiency. “The global economy has become much more efficient in terms of how much it needs oil to produce GDP,” he said. Even so, the Fund warns that in adverse scenarios, prolonged high energy prices and unanchored inflation expectations, growth could slump to 2.5% or even 2%. 

The impact is strikingly uneven. The Middle East and Central Asia have seen their growth forecast slashed by half, to 1.9%. Saudi Arabia’s projection dropped 1.4 points to 3.1%. Emerging and developing economies, which are net oil importers in more than 80% of cases, will feel the pain almost twice as sharply as rich ones. Food-price spikes from higher fertiliser costs will hit the poorest hardest. China’s growth is trimmed to 4.4%; the euro area’s to 1.1%. America, a net energy exporter at the margin, still looks set for 2.3%, though American motorists are already grumbling at the pump. 

5 Key Takeaways 

1. Middle East war triggers a large, asymmetric supply shock. Oil flows fell 13% and LNG 20%, spiking energy and fertiliser prices, disrupting global supply chains, and lifting headline inflation to 4.4%. Net importers, especially emerging economies, are hit hardest. 
2. Global growth downgraded to 3.1% for 2026. The IMF cut its forecast from a planned 3.4% due to the conflict. In worse scenarios with prolonged high energy prices, growth could fall to 2.5% or even 2%. 
3. Impacts are sharply uneven. Middle East and Central Asia growth slashed to 1.9%. Over 80% of countries are net oil importers and will suffer nearly twice as much as advanced economies; low-income nations face steeper food prices. 
4. Policy must stay disciplined and targeted. Kristalina Georgieva rejected export controls and broad price caps. Central banks should “wait and see” while protecting credibility; fiscal support must be temporary, well-targeted, and focused on rebuilding buffers. Strong institutions are the best shock absorbers. 
5. Domestic revenue mobilization has become essential. With fiscal space squeezed by high debt, real-time systems like TaxCore® close indirect-tax gaps (VAT often 30–50% of budgets in emerging economies), boost stable revenue without rate hikes, reduce evasion, and strengthen resilience, exactly what the IMF recommends. 

Who Are the Ultimate Shock Absorbers 

Two days earlier, on April 9th, the IMF’s managing director delivered her curtain-raiser speech under the pointed title “Cushioning the Middle East War Shock”. In measured yet urgent tones she described a textbook negative supply shock: large, global and deeply asymmetric. Prices of energy, fertilisers and even obscure inputs such as helium for semiconductors have surged. Pacific island nations, sitting at the end of the longest supply chains on earth, are particularly exposed. 

The shock travels through three channels: direct price and supply effects, shifting inflation expectations (short-term ones have risen, long-term ones mercifully remain anchored), and tighter financial conditions. Spreads on emerging-market bonds have widened; the dollar has strengthened. Yet Ms Georgieva was clear about what not to do. “Go-it-alone actions” such as export controls or blanket price caps would only distort markets and push global prices higher. Monetary policy should “wait and see” while guarding credibility; central banks must stand ready to raise rates if expectations begin to unmoor. Fiscal policy must stay targeted, temporary and consistent with medium-term frameworks. Most countries, she noted, urgently need to rebuild fiscal buffers after years of high debt and rising interest payments. 

The deeper message was institutional. “Strong fundamentals, institutions and structural policies represent the ultimate shock absorbers,” Ms Georgieva declared. Countries control their own resilience; when shocks arrive, those with robust domestic revenue systems and credible institutions fare best. The Fund stands ready to provide financing, demand could rise to $20–50 billion in the near term, but countries must do the real work at home. Her peroration was blunt: “War takes away everything we work for.” 

Tax Gaps and the Fiscal Space They Create 

It is here that a practical, already-proven technology offers an almost textbook response to the Fund’s call for stronger institutions and better domestic resource mobilisation. Indirect taxes, especially VAT and GST levied on energy, fuel and essential goods, typically make up 30-50% of budget revenue in developing and emerging economies. They are also the most stable source of income during crises. Yet the shadow economy, invoice fraud and weak enforcement mean billions leak away. 

TaxCore®, a real-time fiscalisation and e-invoicing platform, directly closes those gaps. The system captures every transaction at source, eliminates leakage without raising tax rates, and delivers an efficiency gain that the IMF has repeatedly endorsed. In Fiji and Samoa, where VAT and GST can constitute up to 40% of national budgets, the system has delivered immediate, verifiable extra revenue precisely when governments needed fiscal room to protect the vulnerable. The same story is playing out in the Republic of Srpska. Worldwide, TaxCore® has already processed more than six billion invoices. 

Indirect Taxes More Than Revenue Stream

“For many emerging economies, indirect taxes are far more than a revenue stream. Public finance relies heavily on it. Protecting that backbone requires precision, not approximation,”  Goran Todorov, CEO of Data Tech International said, and added, “Domestic revenue mobilization is often discussed in policy terms, but its real impact is technical. If transactions are not captured at source, fiscal policy is operating on incomplete truth.”

The timing could scarcely be better. Many of the economies the IMF flags as most vulnerable, small island states with fragile supply chains, sub-Saharan African importers with thin fiscal buffers, are exactly the places where indirect-tax collection matters most. By generating additional revenue without new borrowing, TaxCore® restores policy space. Governments can afford targeted support for the poorest rather than blunt, distortionary subsidies. In a world of supply shocks and tight financial conditions, that breathing room is priceless. “TaxCore was designed precisely for this reality, to give governments immediate visibility over economic activity and secure revenue without increasing the burden on compliant taxpayers,” Todorov concludes.

The system is also designed for the real world. It functions with patchy internet, integrates easily with existing infrastructure, and turns ordinary citizens into partners by issuing transparent e-receipts and enabling simple fraud reporting. The result is not just higher collection but greater legitimacy: taxpayers see their money supporting public services rather than disappearing into the shadows. That public trust, as Ms Georgieva reminded her audience, is itself a structural policy and one of the best shock absorbers available. 

No Silver Bullet, but a Sturdy One 

None of this is a substitute for the broader policy mix the Fund advocates, energy efficiency, diversification, credible monetary frameworks, and ultimately peace. Digital fiscal tools cannot repair damaged infrastructure in Qatar’s Ras Laffan complex or reopen the Strait of Hormuz. But they can give finance ministers the revenue certainty they need to act decisively rather than defensively. 

Delegates gathering in Washington this week will spend much of their time discussing scenarios, coordination and the Fund’s readiness to help. They would do well to spend a little time on the concrete. When every percentage point of GDP growth is harder to come by, and every extra dollar of fiscal space is precious, closing the indirect-tax gap is one of the most straightforward, high-return reforms on offer. TaxCore® does not promise miracles. It simply does what the IMF has long urged: mobilize reliable domestic revenue, strengthen institutions and give governments the tools to cushion shocks without self-inflicted damage. 

The spring meetings opened with a clear-eyed assessment of risk. They should close with an equally clear-eyed embrace of solutions already at hand. War may take away much, but competent, transparent tax administration can help ensure it does not take away the policy space needed to protect the vulnerable and keep the global recovery on track. 

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In Vanuatu, a nation of 300,000 souls scattered across 83 islands, it feels like the arrival of something big. The system, built by Data Tech International and powered by its TaxCore® engine, is the Pacific’s third fiscal-monitoring platform after Fiji’s VMS and Samoa’s TIMS. That makes Vanuatu the latest small-island state to bet that technology, not just goodwill, is the best weapon against the informal economy and the revenue leakage that has long plagued low-capacity tax administrations. 

The launch centred on a targeted event at the Port Villa’s Warwick Le Lagon Hotel, where DCIR brought together Vanuatu’s largest taxpayers, the businesses that form the pillar of national revenue. Finance Minister Hon. Johnny Koanapo Rasou delivered the opening address, framing the reform in clear, practical terms while underscoring its mandatory nature. 

5 Takeaways

1. VSMS is now live and already processing real transactions: The system entered production with the first large taxpayers successfully onboarded. They issued the inaugural production fiscal receipts using the free web-based invoicing tool provided by Data Tech International, marking the official start of real-time digital sales monitoring in Vanuatu.  
2. Strong high-level political commitment and clear legal obligation: Finance Minister Hon. Johnny Koanapo Rasou called VSMS a “major step forward in the modernisation and digitalisation of our tax administration.” He explicitly stated that the Government of Vanuatu views it not only as a modernisation initiative, but also as a legal obligation established under the applicable legislation of the Republic of Vanuatu.
3. Phased, business-friendly rollout with support measures in place: The implementation adopts a phased approach (starting with large/very large taxpayers, followed by medium, then small and micro businesses) to minimise disruption. Businesses can choose the no-cost government web portal or any certified commercial fiscal solution.  
4. Long-term benefits emphasised by both government and DTI: DCIR Director Harold Tarosa called VSMS “an important step toward strengthening transparency and improving tax compliance across the country” that will “help create a fairer business environment.” Data Tech International CEO Goran Todorov reinforced this view, stating that digital fiscal tools deliver efficient day-to-day operations,” often reducing long-term administrative effort and costs.  
5. Vanuatu joins a Pacific club of real-time fiscal monitoring adopters: Powered by TaxCore®, VSMS makes Vanuatu the third Pacific island nation after Fiji (VMS) and Samoa (TIMS), to implement such a system. Over more than one year of structured collaboration, combined with on-site support during the launch and the successful onboarding of the first taxpayers, the project team has delivered a confident and methodical start to what they position as a cornerstone of Vanuatu’s broader digital transformation.

Vanuatu Sales Monitoring System: Commitment to Transparency and Efficiency 

The minister positioned VSMS as both a modernisation effort and a legal requirement. “The Government of Vanuatu, through the Department of Customs and Inland Revenue, is committed to strengthening the integrity, transparency, and efficiency of our tax system,” he said. “One of the key steps in this direction is the implementation of the Vanuatu Sales Monitoring System.” 

“VSMS represents a major step forward in the modernisation and digitalisation of our tax administration,” he emphasised. “It is designed to improve transparency in business transactions, promote fair competition across the market, and strengthen our ability to combat tax evasion and the informal economy.” 

At the same time, he highlighted the system’s intent to ease compliance. “At the same time, the system is intended to simplify and streamline compliance for businesses. Through the introduction of standardised fiscal solutions and digital processes, VSMS will help create a more predictable and transparent environment for both taxpayers and the tax administration.” 

Legal Obligation and Compliance Deadlines 

The minister was explicit about the obligations ahead. “I would like to emphasise that the introduction of VSMS is not only a modernisation initiative, it is also a legal obligation established under the applicable legislation of the Republic of Vanuatu.” He added: “The system is now fully operational and available for use. Businesses are expected to take the necessary steps to comply with the new requirements, including the use of accredited fiscal solutions and the issuance of fiscal invoices through the system.” 

Large and very large businesses must meet the final compliance deadline of 1 July 2026. By then, they must accredit their systems and actively issue invoices through the VSMS platform.

Recognising the practical challenges, the minister acknowledged costs while pointing to mitigating measures. “We recognize that the introduction of fiscal solutions will require certain investments on the side of businesses. For that reason, the Government of Vanuatu has taken steps to support taxpayers during this transition.” 

He framed the event’s purpose plainly: “The purpose of this session is to help you better understand the system, the compliance requirements, and the steps necessary to ensure a smooth transition.” 

Vanuatu Sales Monitoring System: Live Demonstrations and First Onboardings 

The event itself delivered on that promise of support. DCIR staff demonstrated the system live, guiding participants through onboarding. Each day, at least one taxpayer completed enrolment on stage and issued their first compliant fiscal receipt via the free web tool, transactions that marked the official start of production data capture. 

The rollout follows a phased model to minimise disruption.  Very large enterprises with annual turnover of 100 million Vatu or more have a compliance deadline of 30 June 2026. Medium enterprises with annual turnover of 10 million Vatu or more but less than 100 million Vatu have a compliance deadline of 30 September 2026. Small and Micro Businesses with annual turnover of 4 million Vatu or more but less than 10 million Vatu have a compliance deadline of 31 December 2026. 

What Businesses Have to Do

Before the applicable deadline, every business must register for enrolment in VSMS through the official link, install and maintain an accredited fiscal solution (or use the free web-based invoicing tool), and complete full enrolment in the VSMS system. 

All businesses are strongly encouraged to begin the process early to ensure timely and smooth compliance.  For guidance, accreditation details, or additional support, contact the Department of Customs and Inland Revenue (DCIR). Compliance options remain flexible: the no-cost web portal or any vendor solution that passes certification in the VSMS sandbox environment, keeping the ecosystem competitive. 

Implementation unfolded over more than a year of structured collaboration, beginning in March last year shortly after contract signing. Key milestones included legislative adoption in August, joint governance structures, system development, infrastructure setup and sandbox accreditation for vendors. During the launch, Data Tech International’s account manager Maja Miodragovic worked on-site with DCIR’s project manager George Brechtefeld, director Harold Tarosa, deputy director Collins Gesa and the dedicated VSMS team to ensure smooth operations and rapid issue resolution. 

Our View on the VSMS Journey 

Goran Todorov, CEO of Data Tech International, expressed deep satisfaction with the collaboration and optimism about its long-term impact. “It has been a sincere pleasure for us to work alongside the Department of Customs and Inland Revenue on the VSMS project,” he said. “We see this as much more than a mere compliance reform. It, definitely, is an important step in Vanuatu’s broader digital transformation, and I believe the future it opens is very promising for both government and the business community.” 

Addressing the practical concerns that many business owners are likely to have, Todorov offered reassurance grounded in the company’s experience implementing similar systems in other jurisdictions. 

How Will This Affect My Business?

“We understand that many taxpayers’ first concern is simple: ‘How will this affect my business, my daily work, and my costs?’ That concern is natural. Any new system brings adjustment,” he acknowledged. “But our experience across multiple countries shows that this change is ultimately positive. Once businesses begin using digital fiscal tools, they gain verifiable records of every transaction, better control over sales, easier accounting, stronger credibility, and more efficient day-to-day operations. In many cases, it also reduces administrative effort and the long-term cost of doing business.” 

He concluded on a forward-looking note, framing the reform as an opportunity rather than a burden. “Digitalisation may begin as a legal obligation, but very quickly it becomes a practical business advantage. That is why we are confident that, over time, taxpayers in Vanuatu will not only adapt to VSMS, but will also recognize its value for running their businesses in a simpler, more transparent, and more professional way.” 

Goran Todorov’s comments strengthen the same message from the Minister of Finance and DCIR leadership: even though the transition requires effort, every party involved will gain a modern, transparent, and mutually beneficial tax environment that makes the investment worthwhile.

Reflections from DCIR Leadership 

Director Tarosa, reflecting on the achievement, described VSMS as “an important step toward strengthening transparency and improving tax compliance across the country,” adding that it will “help create a fairer business environment while modernizing the way tax administration operates in Vanuatu.” 

With Vanuatu now the third Pacific nation, after Fiji and Samoa, to deploy a TaxCore®-powered fiscal monitoring solution, the successful go-live and first onboardings signal a confident start. The coming months will see broader enrolment, continued taxpayer support and steady expansion of the system across the business community. 

For an economy where transparent revenue collection directly supports resilience and public services, the launch of VSMS represents progress that is as pragmatic as it is purposeful. 

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Reflecting on 2025: A Year of Progress, People, and Purpose

As 2025 comes to a close, we take a moment to reflect on a year defined not only by delivery and growth, but by deeper capability, stronger teams, and a more mature product that continues to serve tax authorities with reliability and confidence.

This year was not about doing more for the sake of scale. It was about doing things better, with intention, responsibility, and care for the people behind the technology.

Advancing TaxCore® — From Capability to Maturity

Throughout 2025, TaxCore® continued to evolve in step with the fast-moving global landscape of fiscalization and e-invoicing. Our focus was on strengthening the core of the platform: performance, resilience, configurability, and regulatory adaptability.

Key areas of progress included:

• Cleaner architectures and improved modularity
• Better observability, monitoring, and audit readiness
• Enhancements driven directly by operational needs from live jurisdictions

These improvements ensure that TaxCore® remains not only compliant with today’s requirements, but prepared for what comes next.

Investing in Quality: Automated Testing as a Foundation

One of the most important internal milestones of 2025 was the formation and expansion of dedicated automated testing teams.

Their contribution fundamentally changed how we deliver software:

• Broader automated test coverage across all components
• Earlier detection of regressions and complex edge cases
• Faster, safer release cycles without compromising stability

Production readiness is built long before go-live through a structured pipeline of local development, feature testing, integration testing, and staging validation.

Building Intelligence from the Ground Up: Data, Analytics, and AI Readiness

Equally transformative was the work initiated by our data engineering and analytics teams, who took on one of the most demanding challenges: building a new TaxCore data warehouse from scratch, purpose-designed for tax administration.

This foundational effort enables:

• High-quality, structured analytical datasets
• Advanced reporting and cross-domain insight generation
• The responsible application of machine learning and AI tools to support risk analysis, anomaly detection, and compliance intelligence

Rather than applying AI superficially, we chose the harder, and correct, path: build the data foundation first.

Our People First: Growth, Recognition, and Shared Success

Everything we do is built on the strength, expertise, and commitment of our people, and we are dedicated to continuously supporting and developing our teams as well as our company. In 2025, we welcomed new colleagues with different disciplines who enriched our teams with skills, curiosity, and fresh perspectives.

In line with our commitment to taking the best possible care of our employees, we further enhanced our compensation and benefits policy, creating a well-structured system designed to support all our employees. Next year we are rolling out a comprehensive compensation and benefits program designed to:

• Reward individual performance
• Recognize collective team contribution
• Share the success of the company through profitability-linked incentives

Its purpose is to ensure transparency, fairness, and alignment with business objectives, leading to internal equity and external competitiveness.

Moreover, believing in continuous development, we established structured training programs to cultivate leadership skills, which we will continue to expand in 2026. For new employees, we implemented an onboarding program and ensured that all mentors across the company are fully prepared through comprehensive training.

We will continue to work on strengthening our people, our culture, and our organizational capabilities, ensuring that our strategic objectives are driven by the talent, commitment, and innovation of our teams.

Looking Ahead with Confidence and Responsibility

We enter the next year with larger ambitions, guided by experience and discipline. Our priorities remain clear:

• Support every client with consistency and care
• Advance TaxCore® in line with global regulatory change
• Apply analytics, ML, and AI responsibly — where they deliver real value
• Grow our teams without compromising quality, focus, or culture

2025 strengthened our foundations. This gives us confidence for the future.

Thank you to our clients, partners, and team members for being part of this journey.

HAPPY NEW YEAR – 2026

The post Season’s Greetings appeared first on Dti.

From the PITTA meeting stage, Goran Todorov, chief executive of Data Tech International, framed the stakes of the panel, called “Real-Time Transaction Monitoring: Modernizing GST/VAT Compliance in the Pacific”, bluntly. “Real-time transaction monitoring changes the way revenue administrations work. It gives you information at the moment it happens.”

He added the warning that became the session’s refrain: “If you wait for monthly or quarterly filings… you are already too late.”

Around him sat senior officials from Fiji, Samoa, Papua New Guinea and Vanuatu, each addressing different political, technical and economic constraints, yet arriving at a shared conclusion: real-time data may be the region’s most effective weapon against revenue leakage.

5 Key Takeaways

1. Real-time tax monitoring is operational: Pacific nations demonstrated that real-time transaction data is already reshaping how governments track sales, enforce compliance, and protect revenue. As Moderator Goran Todorov put it: “If you wait for monthly or quarterly filings… you are already too late.”

2. Fiji’s results show the power of transparency at scale: With over 677 million invoices, as of today, and 46.6 billion FJD in recorded sales now visible on a public dashboard, Fiji has shifted from speculation to data-driven oversight. Compliance Director Kelerayani Dawai says the change was immediate: “The data started coming to us.”

3. Samoa proved that political turbulence doesn’t have to derail reform: Despite early pushback and a change of government, Samoa’s TIMS system survived because real-time data brought fairness and credibility to the tax process. As CEO Fonoti Talaitupu Lia Taefu said: “Electronic invoicing gave us visibility we never had.”

4. Vanuatu exposed hidden revenue and changed business attitudes: A pre-launch manual survey revealed 2 billion Vatu in previously unrecorded sales. Once TaxCore® implementation started, businesses adapted quickly. The country is now enrolling taxpayers and accrediting vendors into the system, a process Brechtefeld said is proceeding faster than expected

5. PNG sees real-time data as the key to trust in the tax system: With widespread mistrust and inconsistent assessments, PNG is betting on nationwide GST monitoring to restore confidence. Commissioner Samuel Loi argues: “We need accurate information at the point of sale. That’s where the tax is lost.”

Fiji: Proof in the Data

Fiji was the first mover, adopting digital fiscalization through VAT Monitoring System (VSMS) powered by DTI’s Taxcore® in 2017. Compliance Director Kelerayani Dawai explained why the country pushed ahead: consumption taxes are central to the national budget. “VAT or GST is 40% of Fiji’s revenue,” she said. “So that is why we have taken this step to be the first in the region.”

Before the system, Fiji relied on returns that often did not match reality. The new data stream changed the dynamic immediately. “Once the system went live, we saw businesses starting to issue receipts correctly. We didn’t have to chase them. The data started coming to us.”

The numbers she cited emphasized the Public Dashboard that was recently released and that shift: more than 656 million invoices, 46.6 billion Fijian dollars in recorded sales, and over 530,000 receipt scans by consumers verifying authenticity for every Fijian to see.

What this yielded was rare in tax administration: spontaneous compliance. “We are no longer guessing,” she said. “We can see what is happening.”

Samoa: Real-Time Tax Monitoring Through Turbulence

On another hand, Samoa’s implementation was more turbulent. Its real-time system, known as TIMS once again powered by DTI’s signature software, drew early resistance from small enterprises and became entangled in a political transition in 2021.

“When the new government came in, one of the changes they wanted to see was the removal of TIMS,” recalled Fonoti Talaitupu Lia Taefu, chief executive of the Ministry of Customs and Revenue.

To keep the system alive, officials returned to consultations and parliamentary committees. “You cannot continue with something that doesn’t have political support,” she said.

Ultimately, the government accepted the system. What convinced lawmakers, Fonoti said, was the way real-time data leveled the playing field and stabilized revenue. “Electronic invoicing gave us visibility we never had,” she said. “It reflects what is actually happening in our economy.”

It was not a story of uninterrupted progress, she added, but one of persistence. “Our staff understand the data, our taxpayers understand their obligations, and the system helps both sides.”

Vanuatu: Measuring the Invisible

In Vanuatu, the one of the newest adopters, the Inland Revenue Department plans to use real-time monitoring to expose what many suspected but could not prove: the country’s sales tax base is far larger than the records suggested.

Ahead of the Vanuatu Sales Monitoring System (VSMS) implementation which is another instance of TaxCore®, officials hired students to manually count transactions in retail shops to compare against reported sales.

George Brechtefeld, who leads the VSMS program, described the findings: “The sales in December 2023 showed that we collected an extra 2 billion Vatu.” For a small economy, the discovery was staggering. It also shifted attitudes among businesses.

“Our plan is that by November and December, we should start a roll out of the taxpayers, especially those who already have a POS system and they should get their system accredited into the VSMS, then once that is done they can transmit data into TaxCore.” Brechtefeld confirmed.

Local revenue authority has been encouraging taxpayers to pay for their own solution, specifically the external sales data controller. Then once they can transfer the data to TaxCore, intention of the Government is to refund the money to the taxpayer for the initial investment into devices.

Papua New Guinea: Trust and Scale

Papua New Guinea, the region’s largest and most complex economy, has recently signed a contract with DTI for the nationwide rollout of the Goods and Services Tax Monitoring System (GMS) powered by our TaxCore®. This way, PNG is stepping straight into the digital times. And, for Samuel Loi, Commissioner of Tax, the urgency is driven as much by public mistrust as by administrative challenges.

“The answer is yes… mistrust between taxpayers and the government is still strong,” he said. He attributed this partly to inconsistent or delayed assessments: “Taxpayers in PNG often feel uncertain about the assessments and whether they are fair or not.”

Real-time data, he said, can close that gap, especially for GST, which PNG aims to make its top revenue source. “We need accurate information at the point of sale. That’s where the tax is lost, and that’s where we must have control.”

With more than 85 percent of the population engaged primarily as consumers rather than formal employees, Loi argued that transparency at the transaction level is essential for equity.

Real-Time Tax Monitoring: A Regional Message

If the Pacific once followed global tax trends from afar, the officials here argued the opposite is now true. Todorov returned repeatedly to the question of fairness: “The moment of creation of the invoice… a seller and a buyer are aware of the transaction, as well as the government. All three parties have the same perception of the data, and you will agree that is only fair.”

The leaders on stage echoed the point in their own ways. “We have seen the difference,” Dawai said. “This supports the structure we need for the future,” Fonoti added. “When you have real information, you can protect your revenue,” Loi said. And Brechtefeld captured the sentiment most simply: “It works.”

The Broader Appeal of Pacific’s Model

Around the world, revenue authorities are searching for reliable ways to close revenue gaps without imposing new taxes or burdensome audits. What the Pacific demonstrated in a single morning was a model based on real-time facts that practically show that domestic revenue mobilization is possible within the current financial settings.

Finally, in a region often perceived as peripheral to global policy debates, the message was unambiguous: transparency is possible, affordable and operational, not theoretical. And the implications go well beyond the islands now leading the way.

The post Real-Time Tax Monitoring: World Is Taking Notice appeared first on Dti.

The visit coincided with a significant milestone as the project had just completed its Initial Operational Capability (IOC) phase. This phase represents a critical step toward the system’s Full Operational Capability (FOC), the stage when the VSMS will be fully operational and capable of monitoring sales across the country.

During the briefing, the DCIR team, in collaboration with Data Tech International (DTI), presented a detailed update demonstrating that the system is ready to move into the next stage. Officials highlighted the steady pace of implementation and the system’s capacity to enhance oversight in the national tax process.

The presence of the nation’s top leaders accentuated the government’s commitment to advancing digital tools for more effective tax administration. Their visit emphasized both political support and public accountability for this high-priority initiative.

System Objectives and Achievements

Ms. Maja Miodragović, DTI Account Manager, showcased the VSMS’s achievements to date, highlighting the system’s core objectives. These include reducing tax fraud and under-reporting, strengthening tax compliance, maximizing revenue collection, promoting transparency, and supporting fair competition among businesses.

The briefing highlighted how registration and accreditation activities are advancing steadily, bringing more businesses into the system. These efforts demonstrate the VSMS’s ability to integrate with existing structures while preparing for broader implementation across sectors.

Furthermore, officials presented measurable progress in each area, indicating that the system is on track to meet its design goals. The collaboration between DCIR and DTI has been focal to achieving these objectives, combining technical expertise with operational oversight.

This stage of the project reflects the government’s dedication to transforming Vanuatu’s tax system and preparing for a fully operational, digital monitoring platform.

VSMS by TaxCore: Government Endorsement and Next Steps

Both the Prime Minister and Minister of Finance expressed their satisfaction with the progress achieved. They publicly commended the strong partnership between DCIR and DTI, framing the project as a transformative initiative for Vanuatu’s fiscal administration.

“I commend the joint efforts of DTI and DCIR,” the Prime Minister said. “I am enthusiastic about the upcoming phases and eager to see the first results. We look forward to Vanuatu’s continued progress toward digital transformation.”

Finally, the visit concluded with a reaffirmation of the government’s commitment to digital transformation. With the VSMS moving steadily toward Full Operational Capability, the leadership’s endorsement indicates continued support for the system’s implementation and operational expansion.

The positive outcome of this visit provides a strong setting: Vanuatu is advancing in digital tax compliance, aligning practical technology deployment with governmental oversight, and setting the stage for a fully operational, transparent, and accountable system that benefits both the state and its businesses.

The post VSMS by TaxCore: Prime Minister Reviews Progress appeared first on Dti.

Taxes that should fund public services vanish in cash economies where transactions go unrecorded. Goods and services pass across borders and into markets without ever entering official registers. Outdated reporting systems bury tax officials under stacks of paper that fade faster than the memories of those who issued them. For a continent that will soon hold a quarter of the world’s population, such inefficiencies are barriers to growth, equity, and political stability. 

This is the context in which the discussion around revenue assurance has shifted. No longer an administrative exercise, it has become a decisive factor in whether governments can deliver for their people. And at DGA2025, the annual gathering where digital governance takes center stage, one theme will be resonating DTI’s approach: Africa needs the next-generation tax monitoring and reporting solution. 

DTI at DGA2025: The Tax Gap That Refuses to Shrink 

Unfortunately, the continent’s fiscal hole is visible and expanding. According to African Union estimates, countries collectively lose tens of billions of dollars every year through tax evasion, avoidance, and underreporting. Domestic resource mobilization, the polite term for improving tax collection, has been a staple of policy reports for over a decade. Yet, progress remains slow. 

Part of the problem lies in the absence system or having a non-functional system. In many African countries, businesses still handwrite receipts, store them in filing cabinets, and present them to auditors months later, if at all.  Tax authorities have no ability to verify what is accurate and what has been altered. In the meantime, governments run deficits, and citizens lose confidence that taxes are collected fairly. 

This vicious cycle affects budgets, yes. Moreover, it shapes politics as well. When citizens suspect that the tax net is full of holes, they question why they should comply. When businesses know competitors can underreport with little risk of detection, they feel disadvantaged. And when governments lack reliable revenue, they turn to external borrowing, often at steep interest rates, locking future generations into repayment cycles that stifle development. DTI will focus on finding answers to these questions as well, during the participation at DGA2025.

Why Technology Matters Now? 

The call for “next-generation” digital tax monitoring and reporting solution is quite pragmatic. Traditional audit-based tax systems were built for economies where transactions happened on paper, within easily tracked supply chains, and in relatively small numbers. Africa’s economies today are different. 

From the sprawling informal markets to the fast-growing digital payments sectors, millions of transactions happen every second. Capturing them with old methods is impossible. Now more than ever, what is needed is not more auditors with clipboards but systems that can record data in real time, analyze it instantly, and flag inconsistencies before they turn into losses. 

Countries in the Pacific, where DTI is heavily engaged, like Fiji and Samoa have shown what happens when governments shift to real-time monitoring of sales and value-added taxes. Compliance rates rise. Honest businesses welcome a fairer playing field. And tax authorities finally have the clarity they need to plan national budgets with confidence. African governments should examine these examples closely, as they won’t seem as distant experiments but as models that are highly adaptable to their own realities. 

DTI at DGA2025: View from the Ground 

For years now, DTI has worked hard to build TaxCore®, a COTS solution that fits the technical capacity and economic conditions of each country we work in. In practice, that means that our solution is capably to thrive in various tech environments, record every transaction at the point of sale, issue secure digital receipts and feeds the data instantly into tax authority databases. It is a system that removes the uncertainty of manual reporting and builds a continuous chain of evidence from seller to state. 

From DTI’s perspective, the value of such a system goes beyond technology. TaxCore® brings fairness into the fiscal relationship. Taxpayers see that compliance is not discretionary, but they also gain relief from arbitrary audits and burdensome paperwork. Governments receive clarity not through guesswork but through data they can trust. 

“Revenue assurance is not about raising taxes,” as Goran Todorov, CEO at DTI explained in a recent discussion. “It is about collecting the right taxes, consistently and transparently. When the system is fair, trust follows.” This emphasis on fairness should resonate across African capitals too. From Kigali to Lusaka, finance ministries understand that their citizens will support reforms only if they believe the rules apply equally to everyone. And this is exactly why digital tax monitoring becomes an excellent administrative tool. A tool that goes far beyond what is technically intended for, as it can serve as a pragmatical instrument for building legitimacy. 

The Informal Sector: Africa’s Persistent Puzzle 

Still, the road ahead is not simple. Africa’s vast informal economies, ranging from open-air markets to small family enterprises, pose a challenge we saw in other regions of the world. By some estimates, more than 80 percent of employment in sub-Saharan Africa exists outside the formal system. Asking these businesses to suddenly comply with digital reporting may seem unrealistic. 

Yet, this is precisely where next-generation revenue assurance can make a difference. Instead of expecting informal vendors to fill out paperwork, governments can offer them simplified digital tools linked directly to tax authority platforms. Mobile receipts, QR codes, and offline-enabled applications can capture data without disrupting daily trade. 

Countries that have experimented with such approaches report early signs of progress. Vendors who once resisted taxation begin to accept it when compliance becomes simple, when systems are accessible in local languages, and when the benefits, such as access to credit or eligibility for government programs, are visible. 

DTI at DGA2025: A Continent-Wide Moment of Choice 

What makes the discussion urgent now is not only the scale of the losses but also the timing. Africa is entering a demographic surge that will shape the global economy for the rest of the century. By 2050, the continent’s population will double, with millions more needing schools, jobs, and infrastructure. Governments cannot meet this demand if they continue losing revenue to inefficiency and underreporting. 

International donors have long filled some of the gaps, but dependence on aid is increasingly seen as politically and economically unsustainable. Domestic revenue is the only durable source of funding for development. That is why finance ministers from across the African continent are pressing harder than ever for practical solutions. 

At DGA2025, where digital governance leaders from around the world will gather, revenue assurance is not expected to dominate conversations, but DTI will raise this important topic across the board. It is obvious that African officials know that the continent cannot afford another decade of delay. They also know that adopting next-generation systems requires political will, technical training, and above all, trust between governments and citizens. 

The Stakes for Global Confidence 

We must be frank. Africa’s fiscal debate is not confined within its borders. International lenders, investors, and rating agencies watch closely. When governments demonstrate they can collect taxes efficiently, their creditworthiness improves and interest rates on loans decline. Thus, foreign direct investment becomes more attractive. Revenue assurance we talked earlier, in this sense, is not only about balancing national budgets but also about strengthening Africa’s place in the global financial system. 

The opposite is equally true. Countries that fail to modernize remain trapped in cycles of debt and dependency, forced to pay higher premiums for capital while struggling to maintain basic services.  

Toward a Fair Fiscal Future 

DTI’s message at DGA2025 will echo this reality: practical digital tax monitoring is essential. It is the foundation of fair and transparent fiscal governance. With the right tools, Africa can reduce its dependence on external financing, restore confidence in its institutions, and give citizens tangible proof that taxes collected are taxes put to work. 

As Sam Koim, the Commissioner General of Papua New Guinea’s Internal Revenue Commission, recently said in a related discussion about his own country’s reforms: “The idea is not for taxpayers to pay more, but to pay right.” And, Africa’s challenge is no different. The continent does not need higher taxes; it needs taxes collected fairly, consistently, and transparently. That is the promise of next-generation revenue assurance and the reason it cannot wait. 

The post Africa’s Fiscal Crossroads: DTI at DGA2025 appeared first on Dti.

The company views its presence as a chance to showcase its solutions, share insights on real-time transaction monitoring, and support the ongoing efforts of regional authorities to improve transparency, efficiency, and trust in taxation. 

A Panel of Distinct Perspectives 

From our perspective, one of the most closely followed sessions focused on the modernization of goods and services tax (GST) and value-added tax (VAT) compliance through real-time transaction monitoring. The panel, moderated by Goran Todorov, Chief Executive Officer of Data Tech International (DTI), drew significant attention from delegates who see tax modernization as a cornerstone of economic stability in the region. 

The contributions of four senior Pacific tax administrators, from countries that have already implemented DTI’s TaxCore® or are currently in the process of doing so, captured the close attention of the other delegates throughout the discussion. Tax system digitization emerged as a central element in strengthening budget stability, with the depth of the discussion highlighting both the technical and strategic dimensions of digital tax administration. The exchange underlines how real-time VAT monitoring systems enhance transaction visibility, close compliance gaps, and support informed policy decisions across the Pacific. 

Ms. Kelerayani Dawai, Compliance Director at the Fiji Revenue & Customs Service (FRCS), reflected on Fiji’s early adoption of digital tax systems, highlighting lessons from implementation. Mrs. Fonoti Taefu, Chief Executive Officer of Samoa’s Ministry of Customs and Revenue (MRC), spoke candidly about the determination needed to keep tax reform on track during the pandemic. Mr. Sam Loi, Commissioner for Taxation at Papua New Guinea’s Internal Revenue Commission (IRC), detailed his country’s ambitious national rollout of real-time monitoring, while Mr. George Brechtefeld, Acting Manager for Design and Monitoring at Vanuatu’s Department of Customs & Inland Revenue (CIR), explained how a targeted solution will close long-standing compliance gaps. 

Each intervention highlighted the diversity of national experiences while underscoring a shared understanding that traditional reporting models no longer meet the needs of governments responsible for financing development in an uncertain global environment. 

PITAA 2025 Meeting: Data Tech International’s Role 

For DTI, the discussion in Tonga emphasized the growing demand for systems that bring clarity and trust to tax collection. The company’s flagship solution, TaxCore®, has already been deployed in multiple jurisdictions worldwide, and its presence in the Pacific is steadily expanding. 

Speaking after the panel, Mr. Todorov remarked that Pacific tax administrations are at a decisive moment. “The momentum for real-time monitoring is now undeniable,” he said. “Authorities are no longer asking if they should move in this direction, but rather how quickly and effectively they can do it.” 

DTI views the Pacific as a region facing distinctive challenges, including dispersed populations, limited connectivity, and substantial informal economies, yet also as a region where TaxCore® is already delivering measurable benefits. Through the creation of systems that allow tax authorities to record and validate transactions as they happen, governments can close revenue gaps, reduce compliance costs, and strengthen public confidence in the fairness of taxation. 

Why Real-Time Monitoring Matters? 

No one can argue, the move towards real-time transaction monitoring is a technical upgrade. Also, it represents a shift in how tax administrations approach compliance. Traditional models, built on delayed reporting and post-facto audits, often leave revenue authorities one step behind taxpayers. By contrast, real-time reporting provides immediate visibility, making it far harder for tax evasion to go undetected. 

For Pacific economies, many of which depend heavily on consumption taxes, this shift is especially relevant. Governments need predictable revenue streams to finance infrastructure, health care, education, and climate adaptation. When tax systems underperform, the burden often falls disproportionately on external aid or borrowing. Real-time tax monitoring helps reduce that vulnerability by creating stronger domestic revenue bases. 

The Broader Context of PITAA 2025 

PITAA has long served as a forum for member jurisdictions to exchange expertise and coordinate their efforts. This year’s theme, “Pacific Synergy: Weaving a Sustainable Future through Innovative Laws, Efficiency and Strategic Revenue Mobilization,” reflected the urgency of finding collective solutions. 

Tonga’s hosting of the event carried symbolic weight. The country has weathered both the COVID-19 pandemic and the devastating Hunga Tonga–Hunga Ha‘apai eruption, experiences that underlined the fragility of small island economies. In Nuku‘alofa, participants repeatedly circled back to the idea that the region needs cooperation paired with modern tools.

From DTI’s vantage point, the Pacific is showing that practical innovation does not require massive budgets or decades of planning. Instead, well-designed digital systems drive progress by adapting to national circumstances while still adhering to international standards.

PITAA 2025 Meeting: TaxCore® Significance 

TaxCore® is central to this vision. By giving tax authorities, the ability to monitor receipts in real time, the platform reduces opportunities for under-reporting, provides taxpayers with greater certainty, and generates reliable data for policy planning. As Mr. Todorov stressed, “Technology must serve both the administration and the taxpayer. Transparency is not a one-way street; it works only when all stakeholders see value in the process.” 

DTI also recognizes that technology alone is not sufficient. Legal reform, institutional training, and communication with the business community are equally critical. The company, therefore, positions itself not only as a supplier of software but as a partner working alongside governments to meet long-term revenue objectives. 

In conclusion, Pacific tax administrators in Nuku‘alofa this week demonstrated their determination not to remain on the sidelines of global tax modernization. On the contrary, they are actively advancing, country by country, with solutions tailored to their specific circumstances. DTI’s TaxCore® is well-positioned to continue supporting this ongoing journey. 

The post PITAA 2025 Meeting: Push Towards Real-Time Monitoring  appeared first on Dti.

Although the conference floor was really busy, I’ve managed to sit down with the head of Fiji Revenue and Service Mr Udit Singh. And, I was glad I did. The conversation carried the weight of experience and authority. Fiji has faced the challenge of modernizing VAT collection while keeping businesses engaged, a task that many Pacific nations are confronting right now. And yes, this discussion served another occasion as well. As we look forward to the upcoming PITAA Annual Heads Meeting 2025 in Tonga, Mr Singh will join a panel that I am given an opportunity to lead on Real-Time Transaction Monitoring. Thus, this interview acts as a prologue to the mentioned event.  

5 Key Takeaways

1. Real-Time Digital Monitoring Boosts Compliance: Fiji’s VAT Monitoring System (VMS) tracks every transaction, reducing underreporting and ensuring transparency at the point of sale, strengthening revenue collection without raising tax rates.
2. Stakeholder Engagement is Critical: Early and ongoing communication with businesses, training, and consultation build trust and foster voluntary compliance, turning a top-down rollout into a collaborative process.
3. Capacity Building Ensures Success: Practical guidance and hands-on support for both tax officials and business owners are essential; technology alone cannot achieve effective compliance.
4. Transparency and Fairness Drive Participation: By making VAT reporting visible and consistent, the system encourages voluntary compliance and positions businesses as partners in public service rather than subjects of regulation.
5. Political and Legal Support is Vital: Sustained government commitment ensures that technical challenges, misinformation, or stakeholder pushback do not derail implementation, providing a stable environment for cultural and systemic change in tax compliance.

Pacific VAT Compliance: Fiji’s Shift to Digital Monitoring 

For years, Fiji relied on businesses to self-report VAT. On paper, the system appeared straightforward. In reality, many transactions slipped through. Cash payments went unrecorded, and compliance depended on voluntary accuracy. The result was revenue loss and an incomplete view of the economy. This is exactly why the country went down the road of digital monitoring.  

“The biggest improvement has been a clear rise in VAT compliance,” Udit explained. “We also see more voluntary declarations and better alignment between sales data and tax returns. VAT monitoring system (VMS) reduced underreporting and gave us transparency at the point of sale, which strengthened revenue collection without increasing tax rates.” 

The system works because it tracks every transaction in real time. Each e-invoice becomes an official record. The government can monitor revenue as it happens, and businesses have clarity on what they owe. 

Building Trust During Implementation 

Rolling out the VMS powered by TaxCore in Fiji was far from straightforward. Many businesses initially resisted, uncertain about what the system would mean for them. Some worried it might expose errors or invite penalties, while others struggled with technical limitations. Misinformation also spread, with rumors suggesting the system was designed to monitor private business activity rather than improve compliance. 

To address these challenges, FRCS engaged directly with stakeholders. Officials visited offices, shops, and market stalls to explain the system in clear, practical terms. They organized training sessions, both in-person and online, giving staff and business owners the confidence to use the new technology. Consultation forums allowed businesses to raise questions and provide feedback, turning what could have been a top-down rollout into a collaborative process. A dedicated support team was also established, ready to troubleshoot issues and guide users whenever problems arose. 

Mr. Singh highlighted that building trust was as important as installing the system itself. “We wanted businesses to see the system as a partner, not a threat,” he said, emphasizing fairness and transparency over surveillance. By showing that the system aimed to create a level playing field rather than punish anyone, authorities encouraged voluntary compliance and cooperation. 

The focus on human engagement proved essential. Technology alone could not have succeeded without consistent communication, reassurance, and hands-on guidance. Through patient explanation, practical support, and open dialogue, the rollout gained acceptance, laying the foundation for a system that strengthened compliance, fostered trust, and gave both government and businesses clarity about their responsibilities. 

Pacific VAT Compliance: Experiences for Papua New Guinea 

Fiji’s experience provides worthy lessons for Papua New Guinea as it moves on a similar path. Mr. Singh emphasized three key takeaways. First, stakeholder engagement must begin early. Businesses are far more receptive when they are part of the conversation from the outset. Understanding the purpose of the system, its benefits, and how it affects daily operations reduces resistance and builds cooperation. 

Second, capacity building is necessary. Both tax officials and business owners need training to use the system effectively. Without practical guidance and hands-on support, even the most advanced technology can fail to deliver. Fiji’s rollout included workshops, training sessions, and ongoing support, ensuring users gained confidence and clarity in every step. 

Third, strong political and legal backing is vital. Projects of this scale inevitably encounter challenges, technical hiccups, misunderstandings, or temporary pushback from stakeholders. Governments must remain committed so that these obstacles do not derail progress. “When issues arise, politicians must know there is a plan and a goal,” Mr. Singh explained. “The tax authority clears obstacles and makes the process straightforward for everyone involved.” 

Taken together, these lessons show that successful implementation depends on more than technology. Early communication, practical training, and sustained political support create an environment where compliance is achievable, understandable, and accepted. For Papua New Guinea, these insights offer a roadmap to build a system that strengthens revenue collection while maintaining trust and collaboration between government and businesses. And far beyond, as the better VAT compliance in Pacific becomes easier to achieve. 

Digital Transparency and Fairness 

The VMS powered by TaxCore does more than simply record transactions. It creates a level of digital transparency that allows the government to see economic activity in real time. Mr Singh emphisized that the system can quickly identify taxpayers who were previously unregistered or reporting inaccurately. By bringing these activities into view, the system encourages voluntary compliance, making it clear that everyone is treated equally. 

“All taxpayers see that the system is fair,” he said. “Those who pay taxes know the authority is acting with integrity. Compliance improves because people understand the rules and see them applied evenly.” 

This transparency extends beyond numbers on a screen. It strengthens trust between the government, businesses, and citizens. When people perceive that the rules are applied consistently and fairly, they engage with the system willingly. Businesses are not merely monitored, they become active participants in public service. Compliance shifts from being a requirement imposed from above to a shared responsibility recognized by all. 

Through the combination of real-time data with visible fairness, VMS fosters a culture where paying taxes is understood as part of contributing to the community. It is a system that clarifies obligations, reduces uncertainty, and builds confidence in the institutions responsible for managing the country’s resources. 

Pacific VAT Compliance: A Cultural Shift Toward Compliance 

The impact of the VAT Monitoring System reaches far beyond numbers and data. Businesses now comply because the system makes evasion difficult, visible, and inconsistent with community expectations. Compliance emerges naturally when rules are applied fairly and consistently. 

“The effect is quiet but powerful,” Udit Singh said. “The system supports itself because people see it working, and they follow the rules willingly. It aligns responsibility with action.” He added that the visible fairness of the system changes how businesses approach their obligations. “When everyone knows the rules are applied evenly, it removes doubt. People feel that paying taxes is simply part of how business should be done.” 

Mr. Singh stressed that the system does more than enforce rules; it builds understanding. “Businesses start to see themselves as partners in public service rather than just subjects of regulation,” he said. “When compliance is visible, predictable, and fair, it encourages voluntary participation, which is far more sustainable than forcing adherence through penalties.” 

Eyes on Tonga and the Pacific 

The upcoming PITAA Annual Heads Meeting in Tonga presents an opportunity to share these lessons across the region. Pacific nations face similar challenges: dispersed populations, informal economies, and limited technical capacity. Fiji’s experience shows that clear communication, careful planning, and political support are crucial to success. 

Mr Singh’s insights provide a practical guide. Real-time transaction monitoring is no longer theoretical, but a proven method for making tax collection fairer and more reliable. Countries in the Pacific can use these lessons to implement systems that work for their people, their businesses, and their governments. 

“Thank you for trusting Data Tech International and working with us,” I told Mr Singh as our conversation ended. He smiled, acknowledging the effort yet confident about the path ahead. 

The post Pacific VAT Compliance: The Fiji Model   appeared first on Dti.

Amid this mix, the Internal Revenue Commission (IRC) carries a heavy responsibility: to make certain that the goods and services tax (GST) delivers its true potential. For years, salary and wages tax, along with corporate income tax, have been the main sources of revenue. But the goal now is different.

Commissioner’s Vision

“Our vision is to make GST the number one revenue earner for the government,” said Sam Koim, Commissioner General of the IRC, when we sat down during the CATA Annual Heads Meeting 2025 that he hosted. Mr Koim spoke with measured clarity, his words reflecting both the scale of the challenge and the determination to meet it. “But under the current system, it has been a serious challenge.”

This exchange also carries a forward-looking note. At the upcoming PITAA Annual Heads Meeting 2025 in Tonga, his closest associate will join me on a panel I have the privilege of moderating on Real-Time Transaction Monitoring. In that sense, this conversation is not just a reflection on Papua New Guinea’s experiences, but also a prelude to the regional dialogue soon to unfold.

5 Key Takeaways

1. GST as the New Revenue Champion: Sam Koim’s vision is clear, transform GST into Papua New Guinea’s primary revenue source, shifting reliance away from wages and corporate income tax.

2. Tackling Structural Weaknesses: The IRC is confronting deep-rooted challenges, manual receipts, altered invoices, and an expansive informal sector, that undermine accurate GST collection and fairness in compliance.

3. Learning from Fiji’s Experience: PNG studied Fiji’s VAT Monitoring System to adopt best practices and avoid pitfalls, creating a dedicated tax intelligence and data analytics division to ensure real-time data translates into actionable insights.

4. Businesses Gain Fairness and Relief: With the Goods and Services Tax Monitoring System (GMS), businesses will no longer carry the heavy audit burden of faded paper trails. Real-time transaction monitoring ensures all players operate on a level field.

5. A Future Built on Trust and Balance: Koim’s ultimate goal is not higher taxes but the right taxes, collected fairly, consistently, and transparently. Thru embedding trust and efficiency, the IRC aspires to be one of the Pacific’s best-run public institutions.

PNG’s GST Compliance: The Challenges Before GMS

For years, salary and wages tax and corporate income tax consistently outperformed GST in Papua New Guinea. This imbalance created a pressing challenge for the Internal Revenue Commission (IRC). If GST was to become the government’s leading source of revenue, deep structural issues had to be addressed, chief among them underreporting, underpayment, and a lack of reliable data.

Commissioner General Sam Koim explained that many businesses still depend on outdated methods: manual processes, paper receipts, and point-of-sale systems that are neither standardized nor secure. These practices created wide gaps in reporting and made it easy for transactions to slip through the cracks. “More often than not, when we audit taxpayers, they tell us they don’t have invoices, or the invoices are missing. Sometimes invoices are altered, or they simply fade with time,” Koim said. “Auditing becomes a tedious and burdensome process.”

Beyond these technical shortcomings lies another obstacle: PNG’s vast informal sector. From small-scale market vendors to community-run businesses, countless transactions take place daily without ever being recorded. This makes it nearly impossible for the IRC to capture the full scope of GST activity, leaving the tax base shallow and uneven.

Koim was clear-eyed about the consequences. Without a modern monitoring system, revenue collection would remain fragmented, compliance would lag, and honest taxpayers would continue to feel unfairly disadvantaged. “If we want GST to deliver on its potential, we need a system that brings everyone into the same framework,” he emphasized.

That realization led to the introduction of the Goods and Services Tax Monitoring System (GMS), powered by TaxCore. For Koim, this is a decisive step toward building a tax administration rooted in fairness, efficiency, and trust. A true PNG’s GST compliance effort in the making.

Knowledge-Sharing with Fiji

The Pacific region has become a testing ground for real-time tax monitoring, and PNG has been watching closely. Fiji’s VAT Monitoring System, powered by TaxCore, provided both inspiration and cautionary lessons.

“We’ve learned from Fiji in our bilateral discussions,” Koim said. “We saw the positive impact on compliance and revenue. But we also noted the challenges, like the difficulty of using real-time data effectively without the right capacity.”

To avoid similar pitfalls, PNG created a tax intelligence and data analytics division before rolling out its own monitoring system. Staff have been recruited and trained so that once the system captures real-time data, the IRC can immediately analyze and use it. “We are preparing ourselves to use the insights, not just collect the information,” Koim explained.

He also emphasized the importance of involving businesses early in the process. “Stakeholder engagement is critical. Shop owners, enterprises, taxpayers, they all need to understand what this system does and how it benefits them. Awareness is key.”

PNG’s GST Compliance: What Businesses Can Expect

When asked what message he would send directly to businesses and taxpayers, Commissioner General Sam Koim’s response was immediate and firm. Leaning forward, he underscored a principle that lies at the heart of tax reform: “The biggest benefit is fairness.”

For decades, businesses in Papua New Guinea have carried the weight of compliance through manual systems. Receipt books, faded invoices, and stacks of paper not only consumed time but also created opportunities for mistakes, disputes, and unfair outcomes. With the GMS Koim explained that this burden will be lifted. “The system will replace manual receipt submissions with real-time data, removing much of the pressure from businesses,” he said. “We will no longer subject them to the tedious process of producing receipts for audits, because the data will already be there.”

This shift means more than convenience. By capturing transactions at the source, the GMS removes inconsistencies that once left honest taxpayers exposed to arbitrary penalties, while others managed to escape scrutiny. “Everyone will play on the same field,” Koim continued. “Those who comply will no longer feel disadvantaged, and those who avoid taxes will be brought into the system.”

Looking further ahead, Koim described how the current PNG’s GST compliance drive could unlock broader reforms. With accurate transaction data readily available, the IRC envisions moving toward pre-filled tax returns, where much of the compliance work is done in advance by the commission. “This is the critical step toward that future,” he said. “It’s in the mutual interest of government and taxpayers to work together. The government gains clarity and consistency, while businesses gain certainty and ease.”

Building an IRC for the Future

Under Koim’s leadership, the IRC has pursued reforms aimed at building trust and efficiency. When asked what excites him most about the future, his response was one way street.

“I want an IRC where systems flow, processes flow, and people work together toward one purpose,” he said. His vision is not to collect more tax, but to collect the right tax. “The idea is not for taxpayers to pay more, but to pay right. When everyone is part of the tax net, there is fairness and balance. The government can plan with confidence, and businesses know they are treated equally.”

Koim’s aspiration is for the IRC to be recognized as one of the best-run public sector organizations in the Pacific. “That is the kind of IRC I see in the future,” he said with quiet determination.

As our conversation ended, I thanked him for sharing his thoughts and for the commitment he brings to reforming revenue administration in Papua New Guinea. His reply reflected both responsibility and optimism: “This is not just about the IRC. It’s about building fairness and trust for the country as a whole.”

The post PNG’s GST Compliance Drive: Sam Koim Delivers appeared first on Dti.

For Gesa, the Deputy Director of Inland Revenue at Vanuatu’s Ministry of Finance, the sentence is the central dilemma of governing this South Pacific nation of just over 300,000 people spread across 83 islands. His department does collect money, yes, but that money keeps the lights on in schools, funds healthcare, maintains ports, and pays for the asphalt that connects villages to towns as well. Revenue is the bloodstream of the government, and for years too much of it has been slipping away into a shadowy maze of unrecorded cash transactions.

Rewriting the Rules of Taxation – Locally

Now, in a move that would sound ambitious in far larger economies, Vanuatu is locally rewriting the rules of taxation. The solution: a fully digitized tax monitoring system, designed to catch in real time what once vanished without a trace. The name is as technical as it is unassuming, the Value Added Tax Monitoring System, or VSMS powered by Data Tech International’s TaxCore, but behind it lies a confident idea. “It is a full-fledged journey,” Gesa says, a hint of pride creeping into his usually clipped delivery. And he means it literally: the journey from manual ledgers and patchwork reporting to e-invoicing powered by live data.

The Ministry of Finance and Economic Management, through the Department of Customs and Inland Revenue (DCIR) led by Mr Harold Tarosa, is preparing to roll out the new Vanuatu Sales Monitoring System (VSMS) to improve Value Added Tax (VAT) collection nationwide. The system will be introduced between August 2025 and January 2026.

At the heart of this shift is a partnership with Data Tech International (DTI), a company with global experience in fiscal solutions, and its platform Taxcore, which is powering VSMS. As always, the collaboration is much more than a technical handoff but a daily, evolving dialogue, one that, in Gesa’s telling, has already given his team a newfound sense of confidence.

5 Key Takeaways

1. From Informal Chaos to Digital Order: Vanuatu’s economy has long been dominated by an informal cash sector that left government coffers starved. With VAT as the country’s financial lifeline, the introduction of the Value Added Tax Monitoring System (VSMS) powered by Data Tech International’s TaxCore is designed to bring transparency and accuracy to revenue collection.

2. A Partnership That Fits Local Realities: Unlike one-size-fits-all solutions, the collaboration between Vanuatu’s Inland Revenue Department and Data Tech International has been deeply customized. Learning from Fiji and Samoa’s experiences, Vanuatu tailored the e-invoicing system to its own context, with DTI working closely alongside a dedicated local project team.

3. Real-Time Data, Real-Time Accountability: Every transaction in the system generates an e-invoice that is logged instantly. This live data stream ends the old reliance on quarterly filings and guesswork, giving policymakers the tools to monitor revenue, plan budgets, and address gaps with precision, even when offline.

4. Businesses as Partners, Not Targets: For Vanuatu’s enterprises, especially small and medium-sized ones, VSMS simplifies record-keeping and VAT filing, reducing administrative headaches. Collins Gesa emphasizes collaboration rather than punishment, framing taxation as a shared responsibility between government and business.

5. A Cultural Shift Toward Compliance: Tax evasion once thrived in the shadows of a cash economy, but the digital paper trail changes the game. Compliance will rise not because penalties will grow harsher, but because underreporting will no longer be easy or safe. The bigger achievement, Gesa suggests, is cultural: building a modern state where paying tax is part of the national identity.

Vanuatu e-Invoicing: An Old Problem, A Modern Fix

For decades, Vanuatu’s tax structure has leaned heavily on self-assessment. Businesses were expected to keep tidy records and file truthful VAT returns. In theory, this was straightforward. In practice, in a nation where the informal sector dwarfs the formal economy, compliance was more guesswork than science. Receipts were optional, record-keeping uneven, and cash, untraceable, pliable, and ever-present. The result was predictable: government coffers ran short while a hidden economy thrived.

“We have a very small formal system compared to what we have in the informal system, which is a very huge sector,” Gesa explains. His words carry the candor of someone who has spent years watching public finances bleed out in silence. But unlike many of his peers in larger nations, Gesa did not have the luxury of waiting. Vanuatu does not levy personal income tax. VAT is its lifeline. “VAT predominantly is one of our broad-based taxes,” he says. “It has contributed very significantly in the billions… and the government will continue to rely heavily on it.” Now, it is obvious that the challenge was no longer simply about plugging leaks. It was about reforming the entire pipeline.

Borrowed From Neighbors, Tailored at Home

If you want to understand Vanuatu’s confidence in its new approach, you need only look around the region. Fiji and Samoa have already rolled out similar systems based on DTI’s Taxcore technology. Their early experiments, the hiccups and the breakthroughs, became lessons written in real time for Port Vila to study.

“We have learned quite well from our neighboring countries,” Gesa says, though he is careful to add that imitation was never the goal. The trick was to absorb what worked, skip what failed, and write rules that reflected the nation’s own quirks. “We firmly believe that whatever is done in our context… has to be tailor-made, it has to be customized to suit our own local context.”

That tailoring is where the partnership with DTI has flourished. Unlike many international consultancies that arrive with cookie-cutter solutions and leave with invoices, DTI has been unusually present. Gesa drops names, Imre, Maya, Luka, with the familiarity of colleagues, not contractors. “You guys have given us that confidence, that level of confidence and professionalism,” he says, describing a relationship that, by his account, has been “very positive” and “very promising.”

The collaboration has been powered by a dedicated local project team, a rare hybrid of domestic oversight and international expertise. The result is a system that fits Vanuatu’s peculiar e-invoicing needs, a tax net designed for an archipelago where some transactions still happen in market huts beside the sea.

Vanuatu e-Invoicing: What VSMS Actually Does

On paper, VSMS sounds like a bureaucrat’s dream: a system that records every VAT transaction in real time, creating an electronic paper trail. In practice, it means this: the next time a customer buys a meal, a ferry ticket, or a basket of taro in a participating business, the receipt issued is far more than a slip of paper. It is an e-invoice, logged instantly into the system.

For the government, the advantages are obvious. No more waiting for quarterly filings to discover discrepancies. The data arrives live, sharp, and undeniable. “The government needed to move from a patchwork of manual and semi-automated processes to what I call a full-fledged digitized solution,” Gesa says.

For businesses, the benefits are subtler but no less real. Record-keeping, once a tedious, error-prone chore, becomes automatic. Filing VAT returns becomes less about scrambling through shoeboxes of receipts and more about reconciling data already in place. In a country where small and medium enterprises are the backbone of the formal sector, the reduction in paperwork is not trivial.

“Tax should be seen as everybody’s business,” Gesa insists, signaling that the rollout is not meant to be punitive. His approach to the private sector is almost parental: firm but supportive. “We have to be seen in this process as partners… working together to make sure they do understand their obligations and they are doing what is right and what is legal.”

A Phased Rollout, Island by Island

Vanuatu’s geography makes even modest reforms a logistical puzzle. Spreading a digital tax system across six provinces means threading technology through islands where travel can depend on the tides, and where internet connectivity can sputter like a kerosene lamp.

To manage this, the rollout is deliberate, starting with Shefa Province, home to Port Vila. “It is a complex undertaking,” Gesa concedes, though not with the resignation of a man beaten down by obstacles, but with the satisfaction of one who has already started to bend them to his will.

Each phase brings not only new businesses into the system but also new lessons on how to train, communicate, and adapt. The system may be digital, but the rollout is unmistakably human. conversations with business owners, workshops, site visits, and trust-building exercises that stretch from the capital to remote villages.

Vanuatu e-Invoicing: The Promise of Data

What excites Gesa most, though, is not the paperwork saved, or the errors avoided. It is the data itself. “It’s a confirmation for Vanuatu of moving from a manual world of doing business… to a full-fledged journey,” he reflects.

Obviously, for a country with limited resources, data is the real currency. With it, policymakers can predict revenue flows, plan budgets more accurately, and even negotiate better with international lenders and donors. For the first time, the Ministry of Finance will not be guessing at the size of its economy. It will see it, receipt by receipt, transaction by transaction.

And with that visibility comes something far rarer in tax administration: trust. Citizens and businesses alike can see a government not groping in the dark but acting with knowledge. In a small nation, that shift matters.

Betting Big for a Small Nation

For a country often wrongly overlooked on the world stage, Vanuatu’s e-invoicing experiment is striking in its ambition. Larger economies have struggled for decades with digital tax reforms, often drowning in bureaucracy, lobbying, and political gridlock. Vanuatu, by contrast, has moved with a clarity born of necessity.

The stakes are enormous. Billions of vatu ride on the system’s success. Schools, clinics, roads, and ports all depend on it, especially after the large earthquake that recently shook the country. And yet, as Gesa tells it, the decision to take the leap was less about daring than about survival. Without VAT, there is no meaningful revenue base. Without accurate VAT collection, there is no fiscal future. “It’s a large bet for a small nation,” he concedes, his voice steady, his conviction firm. “But it is a bet we are making with clear eyes.”

Of course, tax evasion is as old as taxation itself, but in Vanuatu, e-Invoicing digital paper trail is already changing the calculus. A business owner who once relied on underreporting cash sales now will face an uphill battle against a system that registers each transaction as it happens.

The deterrent effect is quiet but powerful. Compliance rises not because penalties loom larger, but because cheating suddenly looks harder, riskier, and perhaps most importantly, out of step with the new norm. That, Gesa suggests, may be the greatest achievement of all: not just more money in the treasury, but a cultural shift toward paying tax as a shared responsibility.

Vanuatu e-Invoicing: Becoming a Modern State

From the outside, Vanuatu’s move might look like a modest tax reform. To those inside the Ministry of Finance, it feels closer to a cultural reset, a chance to drag a fragmented system into the 21st century and prove that even a nation of scattered islands can build a modern state.

As it has just been legislated, the e-invoicing project has not yet reached every business, nor has it closed every gap. But the momentum is unmistakable as the VSMS is starting its path. The confidence between the ministry and DTI remains high, the early project development results is encouraging, and the sense of national ownership is strong. As Gesa leans forward, his final words sound less like a bureaucrat’s talking points and more like a promise: “The relationship momentum is very high. The confidence is very high. We are moving from a manual past into a digital future. And that is the confirmation we need.”

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