Govt’s super tax on companies a poor decision, says Sir Julius

NEW Ireland Governor Sir Julius Chan says the Government’s super tax on companies such as Bank of South Pacific and Digicel is a very poor decision that will have a reverse Robin Hood effect on ordinary Papua New Guineans.
“Instead of taking from the rich, this Government has seen it fit to take from the poor and give to the rich,” he said.
“The burden will be shoved onto ordinary Papua New Guineans who depend on the services of these companies.
“These companies have managed to thrive on their own accord and disadvantaging them in such a manner is a draconian approach.”
Sir Julius questioned why the Government had not looked to extract its super profit tax from the extractive mining industry.
“I can justify better sharing of the super profit in view of the sudden increase by over US$800 (about K2,807) per ounce of gold that should be shared,” Sir Julius said.
“Not robbing from the poor and giving to the rich.”
Sir Julius said Marape’s decision to defer the implementation of the super tax was a sign that he did not have confidence in Budget 2022.
He said Marape should go with his instinct and cancel the super tax policy all together.
“The Government has its state owned enterprises (SOEs), it can privatise these SOEs and raise revenue from them.
Make the SOEs work for this country,” he said.
Sir Julius described the budget as flat and high on self-aggrandisement or self-entitlement
He said the budget was extravagant on expenditure but very poor on raising revenue.
“Not only did I not vote to pass the budget, I have no confidence whatsoever in the current treasurer because of the experience my province is currently facing under his tenure as treasurer,” he added.
Sir Julius also queried why all of a sudden the Government set aside K50.9 million for the construction of the Boluminski Highway, 25 years after the Lihir memorandum of agreement was signed and the highway already constructed through other funding.
“For now the Government has no choice but to let this unrealistic budget through and next year we will see a complete overhaul of the budget,” he added.