Carbon levy system will complicate mechanisms: Tokome

By DALE LUMA
PUMA Energy (PNG) Ltd country manager Hulala Tokome says the setting up of separate processes to collect carbon levies will introduce extra costs and complicates the existing regulatory mechanisms.
Tokome was responding to the new carbon levies and increase in excise duties imposed by the Climate Change Development Authority (CCDA).
He said smarter solutions were needed to relieve stress on companies and support economic recovery.
A public notice on Monday by the Minister for Environment and Conservation Wera Mori informed stakeholders and partners that climate change charges and fees were to be paid directly to CCDA’s revenue account.
“The oil industry is already highly regulated,” Tokome said.
“It is well managed with all taxes, excise duties and other levies coordinated through a single online system administered through the Customs automated system for customs data system.
“(It) is simple to use and gives all stakeholder a complete overview to drive the government strategy.
“We have emphasised to the CCDA that setting up a separate process to collect carbon levies introduces extra avoidable costs and complicates the existing regulatory mechanisms.
“We need smart solutions that minimise the impact on companies under intense stress and support economic recovery.”
Tokome said the new levies and additional excise duties would “impact our customers at a difficult time”.
“So we are concerned that everything is done to minimise the administrative burden and ensure the process is efficiently integrated into the existing streamlined and efficient regulatory mechanisms,” he said.