Govt urged to ease log export tax

By REBECCA KUKU
THE Government must decrease the current log export tax and make the logging industry conducive for businesses to create jobs, Deputy Opposition Leader Douglas Tomuriesa says.
Tomuriesa said the increase of the logging export tax to 50 per cent in 2021 and a further increase of 20 per cent again last year and put the tax rate at 70 per cent.
“This is totally outrageous, what company will export logs at a 70 percent tax?” he said.
“The Government is chasing companies out of the country, and this will in turn directly affect jobs of hundreds of Papua New Guineans working in the industry, to cut costs in order to afford the 70 per cent tax, logging companies have started laying off workers.
“Many Papua New Guineans have already been laid off and many more will be laid off if we continue like this, because what company will do business when it must pay 70 per cent back as tax to the Government?
“This is takes a toll on the country’s economy and the unemployment rate in the country continues to grow.”
Tomuriesa, who was the former forestry minister for seven years, said that the Government’s reasons for justifying the increase were also ridiculous.
“The Government said that the log export tax was necessary to give K30 million into the PNG-United Nations Biodiversity and Climate Change Trust Fund, but logging isn’t the main contributing factor to causing climate change,” he said.
“When you look at it, it’s the mining industry that is the main contributing factor, and the government can easily make that K30 million for the PNG-United Nations Biodiversity and Climate Change Trust Fund by increasing mining tax rates by just 1.5 per cent.”
Tomuriesa called on the Government to decrease the 70 per cent log export tax.
“Our economy is struggling, more and more Papua New Guineas are losing their jobs and many families are struggling,” he said.
“We need to make the environment of doing business in PNG conducive for more companies to come in and do business.”