Tax

No tax change on cigarette, alcohol and luxury goods

Treasurer Charles Abel announced this in Parliament today when tabling the 2019 Money Plan.

The indexation excise rate on alcohol has been suspended for 18 months meaning that excise rates will be maintained at the 1st June 2018 levels and after 18 months, the excise rates will be reduced to a 2.5 percent increase every six (6) months.

For tobacco, the indexation excise rate will be suspended commencing 1st December 2018, and thereafter, reduced to 2.5 percent increase every six (6) months.

ExxonMobil evading tax, Opposition claims

According to a statement issued by Mr Pruaitch, he said there is no plausible reason why ExxonMobil, as the largest equity holder in the US$20 billion venture, has never been the single largest company tax payer since LNG exports commenced in 2014.

The Opposition leader stressed that as an unincorporated joint venture, all five joint venture partners, including Kumul Petroleum, adopt identical accounting standards so the share of profits and taxable income of each partner is broadly comparable and should reflect their individual equity holdings.

Opposition calls for tax explanation

Mr Pruaitch said the public is entitled to facts and not rhetoric explaining why Kumul’s tax figure for 2014 alone was much higher than the total tax paid by Kumul Petroleum for the three years to 2016.

The Opposition leader said the Internal Revenue Commission records released in the Extractive Industries Transparency Initiative (EITI) annual reports show that the total tax paid to IRC by Kumul Petroleum in 2014, 2015 and 2016 was only K127.5 million, or K115 million less than what was due in 2014.

PM announces tax reform

O’Neill said the reassessment and any reform that follows aims to make the tax regime friendlier.

The Prime Minister announced this during the 2018 Prime Minister’s Back to Business Breakfast in Port Moresby.

Prime Minister O’Neill advised the business community, who turned up in numbers, that some of the tax rates imposed on businesses and individuals are excessive and said interventions will be done.

Sir Nagora calls on PM to admit cash flow crisis

He said this will only set him and his ruling party and the government free so we can proactively find solutions to rescue our country from the deep pit of soaring debts.

Sir Nagora said he is heartened by the fact that tax has emerged as one of many topical campaign issues in the forthcoming elections.

He said the decency of truth about the gross mismanagement of the economy hurts and this has provoked the direct attack against him from the PM.

He made reference specifically to O’Neill’s spurious assertion about GST in The National newspaper recently.

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Tax oversight to affect superfund Members

ASFPNG Interim President and Chief Executive Officer (CEO) of the National Superannuation Fund (NASFUND), Ian Tarutia, said a letter has been addressed to the Secretary, Dairi Vele, to look into the issue.

Tarutia said some of the taxation laws in the proposed amendments have resulted in some ‘unintended consequences,’ such as double or triple taxing of dividend income from companies.

This he said will have an impact on dividends paid to members at the end of the year.

Large number of companies not paying tax

Prime Minister, Peter O’Neill, said the government is aware of such companies and will soon be dealing with them appropriately.

When officially opening the 2017 Leaders’ Summit this morning in Port Moresby, O’Neill said such companies are not needed in the country.

He told the leaders that to eradicate such problems, they need to engage with businesses and companies to fight such illegal companies.

Governor for Oro, Garry Juffa, has also raised this issue many times and called for tax exemptions review in the country.

Doctors call for sweet drink levy to tackle obesity in Australia

The Committee of Presidents of Medical Colleges, representing bodies including the Royal Australian College of GPs, the Royal Australasian College of Physicians and the Royal Australasian College of Surgeons, has developed a six-point obesity action plan to tackle what it calls the most pressing public health issue.

Professor Nick Talley, head of the Committee of the Presidents of Medical Colleges, said urgent definitive action was needed.

"We need leadership, not just telling people to lose weight," he said.

Juffa calls for tax exemption review

He said not just that exemptions should be reviewed but taxes due should be collected.

“Our tax system is a broken machine which is a leaking bucket with wide open holes with which we are attempting at fetching tax revenues.”

He added that countless advise to restructure the IRC and deploy tax collectors to target those who avoid taxes keep falling on deaf ears.

Juffa said a proper intelligence driven tax strategy managed and operated by elite well paid Tax Officers and Customs Officers will ensure maximum collection of taxes.