Industry contributes K9.8bil to economy

Business

THE mining and petroleum industry contributed K9.8 billion to the country’s economy through various revenue streams, according to Deloitte.
Company representative Maygen Turliu, when presenting the 2018 PNG Extractive Industries Transparency Initiative (EITI) report, said the extractive sector contributed 23.9 per cent of Government revenue.
Turliu said when such things as royalty was included to social expenditure, it increased to about 27 per cent.
He said that was only for 2018.
According to the main PNG EITI 2018 report, the extractive sector contributed 29 per cent towards the Gross Domestic Product, 89 per cent to export and 10.1 per cent to revenue.
“This comparison doesn’t include the multiplier effect of the projects such as jobs created and the income taxes,” Turliu said.
“If we include the multiplier effect and other indirect benefits the projects trigger, it is likely that it will increase the industry’s contribution.
“In a holistic view, it is not only taxes that come from the industry but there are other revenue streams such as dividends, social expenditure, etc.”
According to Deloitte, the way forward for the extractive sector is for more consultation with Government.

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