Increased banking levy not effective yet: Fleming

BANK South Pacific (BSP) group chief executive officer Robin Fleming says the bank is still unsure when the increased banking levy will be introduced and how it will work.
The Government had flagged a potential tax increase in the banking system when handing down the 2020 National Budget last year.
“No banking levy has yet been imposed by the Government on the banking sector,” Fleming told The National.
“As yet, there have been no discussions or dialogue with BSP in relation to any levy and how much it may be or when it would be introduced.”
When asked on a possible timeframe which the government might introduce the increase, Fleming said: “It is difficult to provide any estimate of the timeline until there is dialogue with the Government.
“BSP’s view remains the same that any levy or tax cannot be passed on to customers.
“It is a tax on shareholders, who are predominantly Papua New Guinean shareholders including Kumul Consolidated Holdings Ltd, Nasfund (National Superannuation Fund), Nambawan Super, and Comrade Trustee Services Ltd.”