Infrastructure tax credit scheme

Minister Richard Maru said the Government is aiming to raise K1 billion between 2019 and 2022 to fund major infrastructure projects in both resource and non-resource provinces, which have been planned for in the Medium Term Development Plan III.  

He announced that the first project to be funded under the new-look ITCS will be the Gulf to Southern Highlands Highway 12km final missing link. This will be done at a cost of K50 million, up to the sealing stage.

He said this during the ITCS Stakeholders Workshop in Port Moresby on Wednesday.

Minister Maru did not mince his words during his remarks at the ITCS workshop, highlighting issues he said the government want reviewed and discussed.

He said ITCS projects must be consistent with national and local level plans, be fairly distributed across the country, and have government involvement in the consultation and procurement process.

He said there has been no oversight over ITCS and this has to change.

This was the argument put forward by participants of a tax seminar organised by the National Research Institute.

The main point was that while the systems are there, governance on the part of the government is weak, especially when it comes to the management of funds.

The title of the seminar presentation was ‘Papua New Guinea’s extractive resource sector: Towards a policy of leaner tax incentives’.