Mine makes money, time to pay tax

Business

By HELEN TARAWA
RAMU Nickel mine is now in a taxable position and should be able to participate in the new tax credit scheme, National Planning Minister Richard Maru says.
Maru told The National that the new policy for the tax credit scheme would be launched this week, allowing Ramu Nickel to be the first company to participate.
He said Prime Minister Peter O’Neill would tomorrow launch the new tax credit policy “and we will reinstate the tax credit policy which was halted in 2017”.
“There was a moratorium pending a review, which we have now completed and National Executive Council has approved of the changes,” Maru said.
“The new scheme and the new guidelines will be launched by the prime minister and would support this project.”
In response to the questions by Usino-Bundi MP Jimmy Uguro on the tax credit scheme, Maru said it would be up to him, his district development authority and Ramu Nickel to sit down and agree on the full cost.
“I would be happy to see such projects funded out of tax credit,” he said.
“We will be happy because Ramu Nickel had not funded any projects under the tax credit scheme.
“They were operating at a loss for a long time.
“Now that they are making money, they will have to start looking at funding projects in the two districts located in the mine area – Usino-Bundi and Rai Coast.
“The Government will be fully supportive of Ramu Nickel to fund that project out of the tax credit.
“The forms and costing will come through the normal process, but in principle, we support this project.
“The Government will be fully receptive and supportive of that proposal once the application has been received.”
Maru said the issue now was for Ramu Nickel to come to the party and agree to provide the money under the tax credit scheme to build the Usino-Yar Road.
He said the Usino-Yar Highway in Madang would be the first project funded through the scheme.

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