K15 tax uproar

By GYNNIE KERO
LOCAL exporters of beche-de-mer and resource owners are up in arms over the imposition of a K15 tax on each kilogramme of the marine product, saying it will significantly reduce their revenue.
The tax was announced by Treasurer Charles Abel when he tabled the 2019 national budget in Parliament on Nov 13.
The tax is expected to assist the National Fisheries Authority to regulate overharvesting and ensure sustainable sea cucumber fishing. It is expected to raise K10 million next year.
National Fisheries Authority yesterday told The National it was surprised by the decision to impose the K15 tax on sea cucumber which is mainly exported to Hong Kong and Singapore.
NFA’s managing director John Kasu said: “We are working on certification to enter the Chinese market (too).”
The PNG Fishing Industry Association (PNG FIA) and the PNG Beche-De-Mer Exporters Association believe that the K15 per kg tax would reduce the income earned for local fishermen.
The industry supports more than 500,000 people in maritime provinces.
According to the PNGFIA, “some provinces are already charging certain percentage levy on exports leaving the province and if that is not enough, this additional K15 will completely wipe them off.
“Already, the NFA collects licence fees (export licence and export facility licence), including the bond fee of K50,000 from beche-de-mer exporters.”
PNG Beche De Mer Exporters’ Association interim president Harry Landu urged the Government to reconsider its decision as it would ultimately affect the little people who depend on the sea produce.
Landu said the beche-de-mer industry could be worth more than K300 million if the country had proper control and management of the exports.
One of the issues affecting the marine resource included piracy.
Landu said sea cucumber was being singled out for taxing and not “other resources like tuna, lobster, crabs, or every other seafood or marine resource”.
“Why sea cucumber?” he said.
“Imposing a K15 per kg tax on exports of beche-de-mer from next year is ridiculous.
“After seven years of moratorium, this is only the second year of harvest.
“We in the industry have been trying to see how the Government can support the growth of this very important industry.
“The Government continues to misunderstand the nature of this very important fishery. It is limited in natural stock, tonnes of total allowable catch is 315.
“If this K15 per kilo is taxed on it, then the revenue to the state will be K4.72 million if the full 315 tons is all well processed and exported.
“Unfortunately, we encounter between 30 to 50 per cent usually rejected. So total export will amount to 150 tonnes.
“Revenue then to the state will be about K2.35 million. Now, how will the industry pay for this? Obviously we will pass this cost to the fishers.”