Families to suffer from govt’s tariff increases: Ling-Stuckey

The Shadow Minister for Treasury and Finance says PNG families will be facing much higher prices in 2018 because of poor government policies.

“Since forming government in 2017, the National Government has organised to increase prices on 918 items,” reveals shadow minister and Kavieng MP, Ian Ling-Stuckey.

“These price increases will start coming through early in the new year. A government more in touch with the high cost of living facing our people would not deliberately increase prices that mainly suited their business besties.”

Ling-Stuckey said the biggest negative impact will be on family food budgets.

“There have been a massive set of price increases facing families – 518 areas where family food budgets will face increases,” he stated.

“The major ones are the 25 percent increase in milk products, the huge jump in chicken prices of K1.70 per kilo (and this the wholesale price, so the retail price may increase by even more),15 percent increases in a range of fish products and juice concentrates, and the 60 toea per dozen increase in egg prices.

“56 percent of the tariff increases focus on the struggling food budgets of PNG families. PNG families deserve to be able to feed their children without these massive and widespread price increases,” said the Shadow Treasurer.

Ling-Stuckey further revealed that families and businesses will also be facing major increases in their costs of travel.

“The increase in diesel excise by 13 toea per litre – and the government plans to increase it by a further 38 toea per litre in future budgets. On top of this is an increase in all imported petrol and diesel of 10 toea per litre. Experience indicates this will eventually be passed onto motorists as the reduced competition almost always leads to price increases,” he said.

“There are major increases in 47 types of family household products such as 15 percent increase in the costs of laundry detergents, plastic kitchenware, buckets and tableware, as well as 10 percent increases ranging from toilet paper to shampoos and tissues and tablecloths and detergents.”

The Shadow Treasurer said these increases in price are the wrong way to start the New Year.

He stated that though the Alternative Government understands that there is a need to raise more revenue to deal with PNG’s fiscal crisis, the government is going about this in the wrong way.

“Their approach is hurting families. It is inefficient, inequitable and administratively clumsy.

“In future days, I will talk more about the hidden inequities in these price hikes and how out of touch the government has become,” said Ling-Stuckey.

Family Food

Tariff Increase

Number

Description

25 per cent increase

5

Milk - both fresh and UHT. So expect to jump to over K6 per litre for a Paul's full cream 1 litre UHT, not fall to K3 per litre as promised by Minister Maru. Extraordinarily, they forgot to do a similar increase on flavoured milk. So chocolate milk now on the morning Cornflakes (which are also now more expensive)

K1.70 per kg

3

All imported frozen chicken or fresh chicken cut into pieces sees a near doubling in tariff rates from K1.80 per kg to K3.50 per kg

60 Toea per dozen

5

Increase in wholesale cost of all imported eggs for eating

15 % increase

24

All types of cooking oil such as Soyabean, olive, sunflower, palm, and coconut oils. Only applies to containers over 166 litres so very large importers can still bring this in for free, simply repack into smaller containers, and simply pocket the 15% wholesale price increase facing consumers.

15 % increase

3

Smoked Tunas and Mackerel (but not other smoked fish)

15 % increase

2

All fruit juice concentrates

K2.75 per litre

4

All imported soft drinks face an enormous price increase - allows local manufacturers to increase prices accordingly. Import tariff now K3 for every litre.  Used to be 12.5% - so on an imported bottle at a wholesale price of K2, tariff has jumped from K0.25 to K3.00

10 % increase

4

Biscuit such as sweet biscuits, crispbreads, waffles, wafers and gingerbreads go up to 20%

10 % increase

3

Pork goes up to 20%

10 % increase

1

Corned beef goes up to 20%

10 % increase

4

Dried eggs go up to 20%

10 % increase

1

Icecream and iceblocks to 20%

5% increase

5

Bread, cakes, pastries, pizza, pancakes, rusks

5% increase

2

Spaghetti and noodles

5% increase

8

Frozen vegetables such as peas, beans, spinach, corn and potatoes

5% increase

8

Sausages

5% increase

1

Milo and other food preparations of flour, meal or malt

5% increase

1

Cornflakes and other prepared foods from unroasted and/or roasted cereal flakes

5% increase

6

Sugars (stay at 30 per cent - three decades of infant industry protection to Ramu)

5% increase

14

Prepared vegetables such as frozen chips and beans a

5% increase

16

Fruit juices such as orange juice and pineapple juice

5% increase

24

Frozen and dried onions, apples, chickpeas, lentils, broad beans, peas, apricots, peaches, strawberries, plums, dates, figs, nectarines, rasberries.

5% increase

5

Preserved vegetables such as olives and gherkins and mushrooms

5% increase

7

Boneless meats

5% increase

191

Fish - fresh, smoked (except tuna, mackerel which are 15%), canned etc

5% increase

6

Canned meats (except pork)

5% increase

18

Canned fish and shellfish

5% increase

20

Jams and jellies

5% increase

10

Chocolate/cocoa products

5% increase

1

Cordials

5% increase

78

Shellfish such as prawns and lobsters

5% increase

1

Salt

5% increase

1

Sweets

K0.20 per kg

18

Other poultry (ducks, turkeys, geese) get a much smaller change as does whole fresh chickens (for some reason)

2.5% increase

8

Some meats especially full and half carcasses

Toea 20 per dozen

1

Eggs for incubation

K5.0 per tonne

1

Bakers dough

Total tariff lines

510

 

Family and Business Travel

Tariff Increase

Number

Description

13 Toea per litre

1

Increase in excise on all diesel. Moved to 21 Toea per litre. Government says will keep increasing to 60 Toea per litre

10 Toea per litre

1

Increase in import tariff on all petrol (will reduce local competition to keep prices low - competitition better than just the ICCC so price increases likely to follow)

10 Toea per litre

1

Increase in import tariff on all petrol (will reduce local competition to keep prices low - competitition better than just the ICCC so price increases likely to follow)

Total tariff/excise lines

3

 
     

Family Household Products

Tariff Increase

Number

Description

15 % increase

3

Liquid detergents go up by 15%, but powdered detergents by 10%.

15 % increase

1

Plastic baths, showerbaths, sinks and washbasins

15 % increase

2

Shopping bags

15 % increase

1

Plastic tableware and kitchenware

15 % increase

2

Plastic buckets and dustbins

15 % increase

2

Plastic table covers, furniture dust covers, curtains, drapes

15 % increase

4

Foam trays, PET bottles, lids, other

10 % increase

1

Toilet paper

10 % increase

6

Laundry and other soaps

10 % increase

1

Tissues

10 % increase

1

Shampoos

10 % increase

4

Hand and body washes

10 % increase

1

Powdered detergents

10 % increase

6

Nail polish, hair products,

10 % increase

1

Household glues and adhesives

10 % increase

1

Biodegradable shopping bags

10 % increase

1

Paper tableclothes and serviettes

5% increase

8

Cut flowers

2 toea per box

1

Matches

Total tariff lines

47

 
     

Family Building Products

Tariff Increase

Number

Description

     

15 % increase

1

Plastic water tanks and reservoirs and vats over 300 litres - PNG has the lowest access to safe water in East Asia according to the Asian Development Bank. Increasing tariffs so much on water tanks needed by so many of our communities shows the government is out of touch with our people's needs.

15 % increase

1

Plastic baths, showerbaths, sinks and washbasins

15 % increase

1

Iron and steel angles and shapes (except star pickets)

5% increase

5

Paints and varnishes

5% increase

16

Plywood products

5% increase

21

Window frames, shuttering, flooring panels, wooden furniture, clothes pegs, toothpicks and coffins

 

 

 

5% increase

13

Metal building products including window frames, filing cabinets scaffolding, metal watertanks, metal tables, bells

5% increase

8

Seats

Total tariff lines

66

 

Family Clothing

Tariff Increase

Number

Description

     

10% increase

17

Mens shirts, trousers, shorts, suits, matching outfits, jackets and blazers.

10% increase

17

Women's clothes such as blouses, dresses, matching outfits, jackets and blazers,  skirts, trousers and shorts

10% increase

2

T-shirts and singlets

10% increase

1

Socks

10% increase

1

Belts

10% increase

3

Tracksuits

10% increase

20

Mens clothes such as jackets, and matching outfits

10% increase

18

Women's clothes such as jackets and overcoats

10% increase

16

Wind-cheaters, jackets, raincoats

10% increase

3

Jerseys and jumpers if knitted and cotton or manmade fibres

10% increase

1

Scarves and shawls

10% increase

29

Other Clothing

5% increase

20

Handbags, sportsbags, suitcases, briefcases,

5% increase

14

Jewellery

5% increase

113

Other clothing products such as suits, bathrobes, pyjamas, raincoats, swimwear, bras, hankerchiefs, dress patterns, car covers, cushion covers, flags and banners

Total tariff lines

275

 

10% decrease

32

Knitted or crocheted ski suits, swimwear, pantyhose, underpants, petticoats, stockings, slips, baby clothes, shoulder pads, hankerchiefs and pyjamas

 

1

Knitted or crocheted graduated compression hosiery (for example for varicose veins)

 

2

Mens underpants and briefs

 

2

Women's slips and petticoats

 

3

Baby clothes

 

40

 
     

Cigarettes and Alcohol

Tariff Increase

Number

Description

     

K30 per litre of alcohol in beer

10

Huge increase in costs of all imported beer, especially those with over 2.5% alcohol. So for a beer with 5% alcohol, this is a K1.50 a litre increase in wholesale prices. But no increase for imported brandies and cognacs and other spirits or on wine.

K10 per litre of alcohol in beer

1

Smaller increase for low alcohol imported beer (less than 2.5% alcohol content) 

Toea 12.5 increase per cigarette

6

Huges increase in cigarette prices from Toea 7.5 per stick to Toea 20 per stick - but the well off are protected with a fall in the cost of imported fat cigars

     

70 Toea fall per cigar

1

Tariff drops to 20 toea per cigar. Imports used to be based on weight, so for a big cigar such as a 20gram Giant Perfecto, price drops from 90 Toea per cigar.

Total tariff/excise lines

17

 

 

 

 

Author: 
Press release