Firm: No tax holiday

By PETER ESILA
OPERATOR of the PNG LNG project ExxonMobil pays its taxes and does not enjoy a tax holiday, says managing director Andrew Barry.
Barry said this during the PNG Chamber of Mines and Petroleum webinar in Port Moresby yesterday on the project’s real socio-economic impacts.
“PNG LNG does not have a tax holiday,” he said.
“We have a 10-year depreciation on the assets that were built and as that depreciation comes off which is as per with the IRC guidelines, we have paid for the corporate tax perspective to date K1.5 billion, you can imagine once we get through that 10-year depreciation and get off, the tax payment will significantly increase.”
Barry said the project had contributed K10 billion since 2014 to the country’s economy, including K1.5bil in royalty payments to landowners and almost K3bil in taxation.
“We share the PNG Government’s goal of building the capacity of local suppliers and SMEs and our efforts in this space continue to feature prominently across all aspects of the PNG LNG Project.
“We have passed on our values and standards to help create a strong foundation for businesses to expand and broader local industry to flourish.”
“With over 3,000 Papua New Guineans employed in the project, 60 of whom were in management roles with half of them women.
Barry said the company had grown PNG businesses as well as created an avenue of developing leadership skills among locals.
“In partnership with landowner companies and the Departments of Works, we are making ongoing improvements to infrastructure including upgrades to highways, roads and bridges,” he said.
“These upgrades improve not only the connectedness of local communities but also the safety for people across the region.”
Barry said there were opportunities for growth in terms of better access to affordable energy that would enhance local businesses and landowner groups growth, would overall lead to stronger economic growth for PNG.
“Looking ahead, expanding our pipeline infrastructure for upcoming projects will not only unlock new employment opportunities for Papua New Guineans, but create opportunities for new commercial opportunities to drive and deliver long-term and sustainable economic returns to the country.”