Naima rice wants tax exemption

Two issues remain outstanding in the multi-million kina rice project of the Kairuku-Hiri District that is delaying the project from progressing.

A request has been given for a 10-year tax exemption by the developers and up to 80 percent control of the rice market in the country.  

Rice is attracting a lot of interest from countries in the likes of the Philippines, India and China to come in and invest.

At the moment, PNG is importing about 350,000 tons of rice per year, which equates to something close to K600 to K700 million.

The Naime Rice project is requesting to have 80 percent of that market and 10 years of tax holiday.

Minister for Agriculture Benny Allan said these two issues need to be addressed by the government first.

Right now Trukai Industries has about 75 percent of the rice market in the country.

The other 25 percent are shared by other small players like Homestead and Skel Rice.

The industry is questioning Naima Rice’s request for quota in the market, especially when they entered the market without requesting for any.

“So we want to find a balance there. Those two issues are being raised with the State Solicitor and we are still waiting for them to give us a clearance,” Allan said. 

Author: 
Sally Pokiton