Let’s fight inflation, says Towe

THE Government’s K611 million relief package implemented last month does not apply to large resource companies, power producers and international shipping companies, Papua New Guinea Customs chief commissioner David Towe says.
“Business houses and consumers or the public will have to work closely to ensure the relief package is successfully delivered,” he said.
“Under the relief package, we will not impose excise taxes on fuel products, including diesel, petrol, kerosene and zoom.
“Goods and Services Tax (GST) at the border will be exempted on all fuel products.”
Towe, in a PNG Customs, Internal Revenue Commission (IRC) and Independent Consumer and Competition Commission (ICCC) joint statement, said the relief package was aimed at easing the financial burden of Papua New Guineans, Small Medium Enterprises, bus and taxi operators.
The spike in prices of domestic goods and services was a direct result of the impact from the Russian-Ukrainian conflict.
“The relief package changes will be in place for the next six months,” Towe said.
“The Government will provide a total relief of K200 million on fuel products alone – K150 million for excise duty and K50 million on import GST. Our enforcement teams will work together to inspect all fuel stations nationwide to ensure the changes are effected.”
Towe said GST exemptions on a selected basket of goods such as rice, canned fish, flour, corned beef, etc, will be managed by the Internal Revenue Commission in collaboration with the retailers and or manufacturers.
“To ensure the reliefs are smoothly implemented to address the inflationary challenges, we strongly encourage all fuel importers and retailers to ensure the fuel price reductions are fully implemented,” he said.
“Businesses and the public must report any fuel retailer charging fuel higher than the prices set by the ICCC.
“We emphasise the need for everyone to work together to optimise the benefits of the tax reliefs to counter inflation.”