Industry adviser: Investment tax vital

 TAX is good for the country when it comes to investments, Department of Trade Commerce and Industry, Industry adviser Darlie Tony Kulam said.

He said tax was a major factor that affects the net return on capitals.

Kulam said participation in the global market and investment arena is vital for Papua New Guinea. 

“Papua New Guinea is a member of the global community. Within the region there are many countries in the Asia-Pacific, actively aspiring to promote economic investment. 

“We think that investment plays a major role in bringing foreign direct investments into the country. Incentives should be provided to corporate entities that are coming in with capital,” Kulam said. Kulam added that for the last decade, the department had in place the industrial development (pioneer status) act which paved way for investments.

“That act alone has brought in many investments, such as the Napanapa Oil Refinery, RD Tunna Cannery, International Food Corporation among others.” 

However, he said, the act was repealed afterwards which made it impossible for major investments to enter the country.

“Unfortunately, the government has decided to repeal that Act in 1999 and as a result, from 2000 onwards, you won’t see any major investment except the PNG LNG which is the major project.”