PNG Customs can lose about K200 million in collections at the end of the year due to the Government’s K350 million intervention to combat inflation, its chief commissioner David Towe says.
“But we are still tracking the 30 per cent from revenue projects for the year,” he added.
The measures implemented in the second quarter of the year to combat inflation are:
- LIFTING of Goods and Services Tax (GST) on a targeted set of key household items like flour, rice, noodles, canned fish, Ox & Palm, women’s sanitary products, diapers, biscuits, cooking oil (K100 million);
- LIFTING of GST on petrol, diesel, zoom and kerosene for retail consumers (K50 million);
- LIFTING of fuel excise taxes on petrol, diesel, zoom and kerosene for retail consumers (K150 million);
- BRINGING forward the reduction in fuel import tariff excise (K20 million); and,
- SUBSIDY to PNG Power Ltd to help deal with increased fuel costs (K30 million).
- “We have implemented the Government policy to give relief to our consumers,” Towe said.
- “In fuel and tax excise, close to K200 million in tax relief has been given to our Small Medium Enterprise (SME) and motorists.
“As of May 8, all taxes on fuel has been lifted and you will have noted that fuel prices have come down. This is because excise tax on fuel that Customs collects has now been exempted.
“So, at the end of the year we will be having a K200 million hit on our collections but that is a relief given to our people.”
“We may not meet our targeted revenue this year because of the reliefs to combat inflation.”
The National/ Pacific Business News