Govt trying to reduce tariff on SOEs: Minister

STATE Enterprises Minister Sasindran Muthuvel says 30 per cent of airfare costs is made up of the National Airport Corporation fees and taxes.
Muthuvel told Parliament yesterday that the Government was doing its best to reduce the tariff in state-owned enterprises including Air Niugini.
Tambul-Nebilyer MP Win Bakri Daki said as vice-minister for Treasury in charge of the Independent Consumer Competition Commission, he had written to Muthuvel asking the Government to reduce the taxes so as to ease the burden on the high cost of airfares.
He said the festive season was approaching and there would be many people travelling. A tax reduction would go a long way in assisting those travelling.
Muthuvel said Air Niugini needed to operate at above the 10 per cent profit margin to make it viable.
“We will negotiate with Treasury and the NAC to find out how some of the fees and taxes could be reduced.
“I cannot promise that the tariff reductions will be effective by Christmas. We are carrying out the study. As soon as it is completed, we can announce this possible tariff reduction,” Muthuvel said.