Govt aims to increase import of electric vehicles by removing taxes


THE Excise Tariff Bill 2021 which proposes removing taxes on electric vehicles aims to take effect next year.
This was highlighted in the excise tariff (2022 Budget) (amendment) Bill 2021, which proposed amendment to the Excise Tariff Act (1956).
According to the proposed bill, the removal of import taxes on electric vehicles would encourage import of electric cars in PNG to support a green economy.
“The world is moving towards electric cars. This is due to concerns on global climate change as well as improving technologies. The government encourages the uptake of electric cars in PNG by repealing the import tariff on fully kitted electric vehicles to support the green economy. The reform will come into effect on Jan 1, 2022,” the bill stated.
Areas which the bill proposed to make amendments to were to;

  • REDUCE the excise six monthly increase rates for tobacco and alcohol from five per cent to 2.5 per cent.
  • EXTEND the tobacco second exercise tier to counter illicit tobacco for the next two years starting Dec 1, 2021, to Nov 30, 2023. The second-tier excise on tobacco has performed well in raising additional revenue for the Government and fairly limiting the level of illicit tobacco in PNG; and,
  • INCREASE in excise rate for anti-social drinks, strengthen greater than 10 per cent of alcohol content by a further K100 per litre of alcohol.