APRIL 13 2022
PRIME Minister Hon. James Marape has today appealed to the people of Papua New Guinea to bear with the Government as it put into motion the K350 million economic intervention package to relieve families off the pressures of escalating costs of living.
He said today consultations have already been initiated with key agencies Independent Consumer & Competition Commission, Internal Revenue Commission and Customs to immediately effect the relief recently announced in Parliament.
The K350 million package covers the following:
- Lifting GST taxes entirely on targeted set of key household items flour, rice, noodles, tinned fish, ox and palm, women’s sanitary products, diapers, biscuits, cooking oil – (K100 million)
- Lifting GST 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)
- Subsidy to PPL to help deal with increased fuel costs (K30 million).
“As indicated at the last Parliamentary session, and in the subsequent news releases by the Treasurer, the Government is preparing this package to help deal with the cost of living pressures that are flowing from Ukraine-Russian war,” said the Prime Minister.
“Consultations have been held with the ICCC, Customs, IRC and local businesses.
“We are working on the principles that the response needs to be targeted to the most vulnerable; that it needs to be budget neutral with K350 million in estimated additional revenues matched by K350 million in relief; and that the measures should be designed to be temporary.
“Overall, we expect that some K250 million of the package will be focused on targeted reductions in fuel taxes benefitting the retail sector. The other K100 million is to benefit families through lower prices in targeted basic household commodities as listed above.
“We will work with the ICCC to ensure these costs reductions are passed through to benefit families,” he said, adding that any legislative requirements would be taken to Parliament next week for consideration.
The Prime Minister said global events COVID-19 pandemic and now the Ukraine-Russian War have flowed-on impact on the PNG economy but the Government has buffered against these quite well, leading to many success stories being told in communities.
“There are increased profit results for 2021 from local businesses listed on the PNG Stock Exchange, for example,” said PM Marape.
“JMP Securities has 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. These businesses can only be doing so well if the Economy is improving after hitting its lowest from COVID-19,” said PM Marape.
“The Asian Development Bank has forecast a solid growth of 3.4 percent this year increasing to 4.6 percent next year.
“I urge our people to take heart as we brave out one more storm that, once again, is happening at no fault of our own. Our Government tuition fee subsidy is the highest in History at K630 million. Once that kicks in, there is even more relief for our families. Our other financial support programmes in Education – HELP and HECAS/TESAS – are further proof that we do want the best for our people and are doing all we can in these trying times.
“Your Marape-Basil Government is responsive, responsible and is continuing with the budget repair,” said PM Marape.
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