Businesses call for tax relief

By PETER ESILA
THE business community is urging the Government to provide tax relief measure rather than increasing taxes at a time when many are facing low economic activities because of the Covid-19 pandemic.
Bank South Pacific chief executive officer Robin Fleming said the private sector “understands that government revenues have also been challenged”. But he said lower profits “translate into reduced tax payable”.
“The private sector would instead be looking for tax relief rather than increased taxes to enable (businesses) to sustain and maintain their operations,” he said.
“Increasing tax rates at a time when businesses are going through financial stress would not be conducive to an economic growth strategy.” Fleming said airlines, hotels and other accommodations had been affected more than others.
“Even businesses that have been able to improve their operating performances will have experienced some impact on their cash flow as payment terms are stretched,” he said.
Fleming said in relation to any additional bank tax on profits, BSP maintained its view that such tax would be a tax on its shareholders such as Kumul Consolidated Holdings, Nambawan Super, Nasfund, Motor Vehicle Insurance Ltd, Comrade Trustees, Credit Corporation and Teachers Savings and Loans Society.
Paradise Foods chief executive officer James Rice urged the Government to control its spending.
“No company should have a tax increase because no company will take a price increase,” he said.
“The state of emergency has hurt all citizens.
“Companies will have to settle for no revenue growth in 2021 and so should the government.
“A tax increase on any industries will have the unintended consequences of job losses, exactly what is not needed in PNG right now,” Rice said.