'Technical Glitch' In Payroll Software Sparks Riots In Papua New Guinea

Papua New Guinea declared a two-week state of emergency following riots and multiple deaths, triggered by a payroll system error that incorrectly applied higher tax rates to government employees' salaries. The Register reports: The pacific nation recently extended COVID-era tax reductions into 2024, but the payroll system used for government employees was not configured correctly and in the first pay run of 2024 reverted to older and higher tax rates. Government workers were therefore taxed at a higher rate and their pay packets were around $100 less than expected -- about half the pay for many employees. That situation was misinterpreted as a surprise tax hike and some workers, including Police, went on strike to protest the situation.

Some saw the absence of law enforcement as an opportunity, and riots quickly spread across the city, accompanied by looting. Prime Minister James Marape described the situation as a 'technical glitch,' before later declaring a state of emergency that has seen troops stationed in the capital to restore order. Commissioner general of the Internal Revenue Commission, Sam Koin, apologized 'for the loss of lives and properties during these regrettable and avoidable incidents.'

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