Extractive sector raises concern over credit scheme

By Lemach Lavari
DEPUTY Prime Minister and Treasurer Charles Abel says the extractive industry is concerned about the retention of the infrastructure tax credit scheme.
Abel said concerns over the fiscal regime were raised by the executive director of the PNG Chamber of Mines and Petroleum Dr Albert Mellam and representatives of PricewaterhouseCoopers.
“Out of the seven key issues, the retention of the infrastructure tax credit scheme was one that raised much debate,” he said.
“The government has decided to retain the scheme because there are so many positive things that came out of it.”
He told the PNG Mining and Petroleum Conference yesterday that the scheme needed to be adjusted “and not removed totally because it has assisted us to provide quality infrastructure especially in remote areas in the footprint of projects”.
“It also brought project security among our people,” he said.
He said special amendments were made to the scheme to fund development projects in Port Moresby such as Apec House and the National Football Stadium.
A recent preliminary report by NRI recommended that the infrastructure tax credit scheme be repealed because the government was missing out on much needed revenue.
Able said the new “Revenue Regulation Bill” would be tabled in parliament to boost government revenue in 2018. Part of that bill is a one-off exercise to sweep government agencies’ accounts.