Govt urged to withdraw plan

THE Government has been urged to withdraw its proposed banking levy aimed to generate K190 million per annum in revenue.
The Association of PNG Superannuation Funds was responding to a recent Cabinet decision to introduce the tax, saying it needed “wider consultation”.
Executive officer Vera Raga and president Ian Tarutia said the decision would affect the Bank South Pacific Group which the superannuation funds were major shareholders of.
“The imposition of this new banking levy will result in a decline in profitability, dividend payments to shareholders and a decline in BSP’s share price,” they said. “This is a double blow for superannuation funds as annual crediting rates for members will be affected by lower revenues and portfolio balances.”