Fee increase to affect businesses

THE increase in agriculture fees will have a massive impact on businesses and was done with little to no consultation, says Brian Bell chief executive officer Cameron Mackellar.
In a newspaper public notice on Monday, the Climate Change Development Authority (CCDA) stated that the new carbon levies, fees and charges would come into effect on Sept 1.
According to the public notice, the review was conducted by CCDA in consultation with Finance Department, relevant stakeholders and government agencies.
CCDA said at its conclusion, specific levies and fees were identified for initial imposition: namely; carbon levies, nitrogen synthetic fertiliser and green fees.
Mackellar said: “Quite clearly these fee increases will have a massive and negative impact on most organisations and businesses in PNG.
“The range of increased fees is across a number of areas with some, as work permits common to most businesses.
“The exact financial impact will need to be reviewed by us and I’m sure many businesses will be doing the same.
“This appears to be done with little or no consultation with businesses or industry groups, certainly no consultation with Brian Bell,” Mackellar said. “As a leading tax payer in this country, that would be our minimum expectation, just some simple and appropriate consultation would have been appropriate.
“However, it seems this government is intent on changing lots of things without consultation.
“Frankly, it’s poor and shouldn’t be seen in any way of acceptable practice.
“In some cases, certain fees have increased 300 per cent with no justification.
“You can’t say that’s fair nor should it ever be without consultation. With any increase in taxes or fees to business, most businesses will simply pass that fee onto the consumer or their customers.
“Unfortunately, the end user ultimately pays the price, which in the current climate is deeply challenging. I have no doubt this will hurt most businesses, including us.
“It doesn’t seem right with all the other economic uncertainty facing PNG right now, in addition to the Covid-19 impacts.
“No one other than Government would be happy with these increases.
“Interestingly, out of the circa 180 fee changes I have seen, there is circa 10 that have reduced marginally.
“The vast majority have increased, and some substantially by 300 per cent or so.”