THE Papua New Guinea Government will implement a K350 million relief intervention package in the second quarter of the year to address inflation, says the country's Prime Minister James Marape.
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| PNG Government sets K350 million relief package [Photo by pngfacts.com] |
The package includes the lifting of goods and services tax (GST) on selected household items and retail fuel products, fuel excise tax and fuel import tariff.
There will be a K30 million allocation to PNG Power Ltd to deal with the increasing fuel costs.
The breakdown is:
- LIFTING taxes on key household items such as flour, rice, noodles, tinned fish, ox and palm, women’s sanitary products, diapers, biscuits, cooking oil (K100 million);
- LIFTING taxes entirely from petrol, diesel, zoom and kerosene for retail consumers (K50 million);
- LIFTING fuel excise taxes entirely from petrol, diesel, zoom and kerosene for retail consumers (K150 million);
- BRINGING forward the reduction in the fuel import tariff excise (K20 million); and,
- SUBSIDY to PNG Power to deal with the increased fuel costs (K30 million).
“Government has put together a K350 million intervention package to help relieve families going through this tough times of inflation and rising goods and services directly related to the crisis in Russia and Ukraine,” he said.
“The crisis has a direct (effect) on the rise in oil prices.
“When oil prices rise, it has a direct effect on the cost of production and services.”
He said consultations were being held with the state agencies and businesses.
“We are working on the principles that the response needs to target the most vulnerable,” he said.
He pointed out that there had been increased profit results for 2021 for businesses listed on the PNG Stock Exchange.
“JMP Securities noted an average 33 percent increase profits in 2021.
“Strong profit increases by BSP, Kina Securities, Credit Corporations and NGIP Agmark are few more examples,” he said.
He said the Asian Development Bank forecast a growth of 3.4 percent this year and 4.6 percent next year.
The National / Pacific Business News
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