Duma: Dominant industry levy will have minimum impact

THERE will be minimal impact from the dominant industry player levy that is to be introduced in Budget 2022, State Enterprise and Investment Minister William Duma says.
Commenting on the Budget, Duma said he supported the levy.
“The Government has continually been working with regulators and industry bodies, the banking sector was the recipient of quantitative easing last year with the Bank of PNG lowering the cash reserve minimum from 10 per cent to 7 per cent, paving the way forward for greater income and profits for the banking sector,” he said.
“Kumul Consolidated Holdings as the major shareholder of BSP has confidence the banking sector will remain competitive and that there will be minimal impact from a year-to-year return basis from the increase of the levy.
“Kumul Consolidated Holdings has been the recipient of consistent dividend growth with a compounded average growth rate of 11 per cent since 2012. There is no reason for this not to continue into the future.”
However, Prime Minister James Marape told Parliament on Tuesday that the bill would not be implemented until July.
Meanwhile, Duma added that next year’s budget would seek to confront challenges of the future with a sense of certainty for Papua New Guineans.
“I commend the Treasurer (Ian Ling-Stuckey) for steering the country away from expensive overseas commercial borrowings, thereby lowering the interest cost of loans,” he said. “This in turn generates greater multiplier effects on the domestic economy.
“This is evident in my ministry, where state-owned entities have greatly benefited from concessional borrowings from both the Asian Development Bank and Australian Infrastructure Funding Facility for to new infrastructure programmes.”