The PNG Customs Commission recently outlined that tariff on import duty was reduced for a number of items.
This was part of their efforts to support the manufacturing industry in the country, outlined Chief Commissioner, David Towe, during the 7th Customs-To-Business-Consultative Forum in Lae last month.
Removing tax on imported raw materials would directly affect the prices of finished products like soap, and other items that are manufactured in the country.
“The 2024 Budget passed has amended Customs Tariff Act 1990,” Towe told attendees.
Tariff on import duty was reduced to zero duty for the following items:
- Soap noodles (reduced from 20 percent)
- Flexible intermediate bulk containers (reduced from 10 percent)
- Other packaging containers (reduced from 10 percent);
- Boneless meat for manufacturing pork luncheon meat (reduced from 20 percent)
- Margarine (shortening) (reduced from 25 percent)
- Caps used for beverages and the like (reduced from 20 percent)
- Mattress inner springs (reduced from 10 percent)
Towe said the new tax relief measures are anticipated to have good benefits for the economy and consumers. For example, removing tax on raw materials would mean reduced costs of production and manufacturing of basic consumer goods.
“This would encourage local production and downstream processing, reduce the shelf prices of some basic consumer goods at shops and retail outlets in the community and reduce the cost of living pressures experienced by our people as a result of imported inflation.”
Towe further pointed out that this will assist with the creation of local employment and jobs.
Moreover, he stressed that Customs and the business community cannot work in isolation.
“We must continue to work together to foster a compliant and conducive environment that underpins resilience and sustainable growth, as per our 2024 theme: ‘Advancing Growth Through Collaboration and Integrity’,” said Towe.