Customs helps tax relief

The National Business

TAX relief measures implemented by the PNG Customs this year will assist the manufacturing industry, according to chief commissioner David Towe.
“It is anticipated that the final shelf prices of these basic consumer goods at the shops and retail outlets will be reduced when the savings are passed onto the consumers,” he said.
“This will certainly alleviate the cost of living pressures experienced by our people from imported inflation with the consumption of imported goods and food products.”
Tax relief measures include:

  • IMPORT duty on soap noodles reduced from 20 per cent to zero import duty;
  • IMPORT duty on flexible intermediate bulk containers reduced from 10 per cent to zero import duty;
  • IMPORT duty on other packaging containers reduced from 10 per cent to zero import duty;
  • IMPORT duty on boneless meat for manufacturing pork luncheon meat reduced from 20 per cent to zero import duty;
  • IMPORT duty on margarine (shortening) used in manufacturing of breads and biscuits reduced from 25 per cent to zero import duty;
  • IMPORT duty on caps used for beverages and the like, reduced from 20 per cent to zero import duty; and,
  • IMPORT duty on mattress inner springs reduced from 10 per cent to zero import duty.

Towe explained that the above measures would reduce costs of production for manufacturers, assist in generating growth and as an indirect investment into the economy.
“It is anticipated that as a result of the removal of import duties and taxes on these intermediate goods, and with the reduction in the cost of production, the final consumer prices of the finished products at the shops and shelves of retail outlets will be reduced.
“The basic consumer goods include soaps, biscuits, breads and scones, canned pork luncheon meats, bottled drinks and beverages, chickens, packaged consumer goods, mattresses, and others,” Towe added.
“This reduction in cost of production when passed onto consumers will then help to alleviate the cost of living pressures experienced by our people due to the imported inflation on most imported consumer goods.”