Inflation beyond Govt’s control

The National Business

By DALE LUMA
MICRO, Small and Medium Enterprise (MSME) Council president Des Yaninen says some of the factors causing inflation in the country are out of the Government’s control.
Welcoming the Government’s K350 million relief package to ease the burden on consumers due to the rise in the cost of fuel and other items, Yaninen said the package would keep MSME costs low and ensure they did not pass on costs to consumers.
The breakdown of figures for the K350 million are as follows:

  • LIFTING GST taxes entirely on targeted key household items including flour, rice, noodles, tinned fish, canned beef (Ox & Palm), women’s sanitary products, diapers, biscuits and cooking oil (K100 million);
  • LIFTING GST taxes entirely from petrol, diesel, zoom and kerosene for retail consumers (K50 million);
  • LIFTING fuel excise taxes entirely from petrol, diesel, zoom and kerosene for retail consumers (K150 million);
  • BRINGING forward the reduction in the fuel import tariff excise (K20 million); and,
  • SUBSIDY to PNG Power to help deal with increased fuel costs (K30 million).

“We appreciate that some of the factors causing inflation are beyond Government control and so we commend this proactive approach to remove taxes on fuel and key items,” he said.
“This will keep MSME costs low and so we will not have to pass on costs to consumers. Any responsible government must be responsive to the cries of her people and this Government has shown that.”