Log tax high, says Namah

VANIMO-Green MP Belden Namah says the 20 per cent increase in log export tax will put the country’s economy at risk.
“There will be collateral damage to our country because of this decision,” he said.
Debating Budget 2023 in Parliament on Friday, Namah said: “Last year, the Government increased the tax to 50 per cent and with a further increase of 20 per cent, the current log export tax is at 70 per cent.
“I do not know if the treasurer or the budget committee had consulted the PNG Forestry Authority or the forestry industry.
“It seems as though we are listening to foreign advisers who are trying to influence our budget and the tax system.”
Namah asked if the 20 per cent increase on log export tax was necessary to give K30 million into the PNG-United Nations Biodiversity and Climate Change Trust Fund, which the Treasurer Ian Ling-Stuckey said it would do during his presentation of the budget for the Government to stop round log export and encourage downstream processing.
“The effect of this decision will kill the logging industry in the country,” he said.
Namah said the logging industry must be seen a renewable sector over the years.
“Why do we give exemption and tax concession to multinational companies in the extractive industry which is a non-renewable sector and find it easier to tax the renewable sector?” he asked.
Namah said there would be a loss in the log export development levy and landowners would also lose royalty payments.
He added that more than 3,000 jobs would be lost with the increase in the log export tax.
“Some 2,600 jobs were lost last year because the tax was increased to 50 per cent,” he said.
“This will greatly affect the citizens of this country,” he added.
Namah said the logging industry had contributed immensely to the development of the country. Before this Government, the Connect PNG concept and the logging industry had been connecting the country.”