February 8th 2021
The Autonomous Bougainville Government (ABG) will now receive a generous 70 per cent of taxation collected in the Region, last Friday’s (February 5th 2021) Joint Supervisory Body (JSB) meeting in Arawa has resolved.
This was one of nine resolutions passed by the JSB.
The JSB endorsed that the formula of the taxation structure of 70 per cent to the PNG Government and 30 per cent to the ABG be reversed to accommodate for a new taxation structure of 30 per cent to PNG Government and 70 per cent to ABG.
Prime Minister Hon. James Marape welcomed the new taxation arrangement.
“I am satisfied with this arrangement,” he said.
“It is complementary to my view in life that when you want to decentralise and empower a sub-national government or a specific region, in this case Bougainville, you must also ensure revenue-raising mechanisms so that they are empowered.
“In this JSB, we’ve changed the taxation formula so that 70 per cent is kept here (Bougainville) and 30 per cent is sent to Waigani for National Budget purposes.
“This is, in my view, a small but milestone achievement that complements our view of economic independence, and empowering regional governments or sub-national governments.
“In this instance, Bougainville is a special Government in our country, which is fully exercising the view my Government has of empowering people.”
PM Marape commended Bougainville President Hon. Ishmael Toroama for pushing for this change in the taxation arrangement.
“All the revenue will be collected and kept here (Bougainville) for them to carry out service delivery to the people,” he said.