Beche-de-mer exporters unhappy with new tax

By GYNNIE KERO
DRIED sea cucumber (beche-de-mer) exporters are unhappy that they will have to a pay a new tax of K15 per kilogram from next year.
The new tax is expected to assist National Fisheries Authority curb overharvesting and ensure sustainable sea cucumber fishing.
According to the 2019 Budget, the tax is expected to raise K10 million next year.
However, it is understood that the decision by the Government for the K15 tax would reduce the income earned by local fishermen and women by more than half.
More than 500,000 people in maritime provinces rely and benefit directly from this fishery.
The ratio composition of low value species to high value species is about 90:10.
So for instance, if the current price of low species such as chalk fish is K15/kg, then effectively the price will be reduce substantially to between K2-K4 per kg.
Leo Kuso of Dybes Ltd, a local beche-de-mer exporter and resource owner from New Ireland, said: “This new tax will cause investors to cover costs and expenses by greatly reducing their buying price and thus local fishermen will be affected greatly.” The PNG Fishing Industry Association (PNG FIA), which has members who are local exporters, was concerned with the decision aimed to bring in more revenue for the Government.
The association said ultimately it would only end up killing off most of the local exporters and instead create a “monopoly” over the industry.
In a prepared statement, PNG FIA said: “Some provinces are already charging certain percentage levy on exports leaving the province and as if not enough, this additional K15 will completely wipe them off.
“Already, NFA collects licence fees (export licence and export facility licence), including the bond fee of K50, 000 from beche-de-mer exporters.
“The Government should not be charging any tax at all on this coastal community near shore fishery that is seasonal.
“This is the only commercialised export fishery where rural coastal communities have direct participation in the harvest and receipt of payment for their resource.
“The PNG FIA believes that the Government’s explanation that the K15 per kg export tax is a measure to control over harvesting is shallow and illogical.”