More, higher taxes not the answer

THE Government’s proposed 2022 Budget plan of imposing additional tax levy on banks and telecommunications to raise K285 million annually must be discussed properly as this will effect our ordinary Papua New Guineans.
Our people have been suffering and struggling every day due to the Coronavirus (Covid-19) pandemic and Delta variant, coupled with the high unemployment rate, rise in goods and service tax (GST), housing rentals, water
and electricity and much, much more.
Another increase in Government tax will certainly pass onto the consumers and effect them badly.
Let’s be real, banks and telecommunication companies will pass the levy to consumers.
Worse-hit will be the public and private sector employees who are already being double-taxed with salaries and wages tax deductions while, at the same time, paying GST.
If the Government wishes to bring about and increase any new tax measures, it is important that consultations and lengthy discussions take place about this.
The Government truly needs economic rescue plans, not high taxes and a high unemployment rate.
I suggest that the Government considers doing away with salaries and wages fortnightly income tax and come up with better ways of imposing and collection GST.
Taxing both companies and employees are like “milking the same cows” over and over again and it will not improve productions.
Our government, politicians and bureaucratic planners must concentrate on building our economy and resource development instead of relying on international and domestic loans,
adding to our country’s high debt and high repayment interest rates.
The real purpose of any government raising tax and passing them onto consumers is to help the government pay off our loans and interest which has built up over the years.
Unless we stop borrowing to spend only on development projects, we will continue to face financial problems.
Our prime minister, State ministers and their advisers must stop going around and signing project agreements without first consulting with the landowners who are the resource owners, not provincial and district governments.

Samson C Napo
Former Bulolo MP