Juffa: Halt ‘kina’ slide

National, Normal

The National, Wednesday November 6th, 2013


FUNNELLING money offshore and avoiding taxes contribute to the continuing slide in the value of the kina, Northern Governor Garry Juffa says.

He has called on the government to put strategies in place immediately to counter the depreciation in the kina.

Juffa said the trend would see the rise of prices of goods and add to the difficult life that the people of Papua New Guinea were facing.

“Weak banking laws, outflow of profits and savings and increased imports are suppressing the kina further, so it will all translate to more hardship for the average Papua New Guinean,” he said.

Juffa said the so-called “economic boom” was not benefiting Papua New Guineans from where the kina stood.

“It is benefiting those who live offshore and those who are funnelling profits and savings offshore with ease and no restrictions at all in place,” Juffa said.

“Businesses are also devaluing their imports and avoiding payment of custom taxes due to the state.”

Juffa said even though they were not paying taxes, they were transferring the taxes onto consumers.

He said “IRC must move fast and tax the resource industries such as forestry and fisheries and reduce the hefty taxes that are being transferred on prices of goods and services provided to the people (consumer and Papua New Guineans).”

He said the tax review committee must consider  taxes that are being charged on retirement benefits.

Juffa said the issues should be addressed to prevent PNG from further economical hardship.