Minister supports Air Niugini’s call

Business

MINISTER for Tourism and Culture Tobias Kulang is supporting the call by Air Niugini for the Government to review the increase in the departure tax.
Kulung, pictured, said he understood where airline board chairman Sir Frederick Reiher was coming from.
“I understand where the chairman is coming from as it will have effect on the airline operations and the tourism sector,” Kulung said.
“I support the chairman’s call for the Government to review the increase in the departure tax.
“I am also thankful that the Treasurer has announced that we will be reviewing the budget in January, which is basically a push for us to review some of new tax measures that we have introduced in the 2017 budget.
“So I will support the chairman to take the issue to Treasury and Cabinet to ensure that it is reviewed to a comfortable level.”
Kulang said there was a need for the Government to raise revenue through new tax measures due to the fall in commodity prices. “The Government would be reviewing the budget early next year and it would be an opportune time for the airline’s submission,” he said.
“The Government has to raise a certain revenue to meet the budget because the downturn in the other critical commodity prices such as oil and gold.”
The Government had decided to increase the departure tax from K30 to K114.
Air Niugini board chairman Sir Frederick Reiher has described the decision as “counterproductive” and the airline would make a submission to the Government to review that decision.