New levies, fees harsh: Nilkare
THE new levy and fee increases on the agriculture sector are harsh for the already struggling businesses in the manufacturing and agro-business industries, an official says.
The fees were imposed by the Climate Change Development Authority (CCDA) and the Department of Labour and Industrial Relations (DLIR).
Chairman of the Palm Oil Producers Association and a member of the Rural Industries Council Robert Nilkare said Papua New Guinea was already into months of downturn in the economy, mirroring what the world was facing as a result of the coronavirus pandemic.
Nilkare said during these unprecedented times “there is simply no-cash in the economy and most manufacturers and agri-industries are looking at record losses in 2020”.
“We are now faced with new levy and fee increases by the Government through its two agencies,” Nilkare said.
He said the Government had done well in containing the spread of Covid-19 in the country and business houses and the community at large commended them for that.
However, an unintended consequence of that had been the negative impact on PNG’s economy.
“The CCDA will now collect a carbon levy, nitrogen synthetic fertiliser levy and green fees.
“We understand that this is a revenue generation exercise for the Government during these hard times, however, all these levies will add to the cost of production and also cost to customers and will have a significant impact on the value of agriculture commodity trades.
“This means the costs will reduce company revenues and their abilities to survive, reinvest and when possible, pay corporate taxes in the long run.
“More significant is the fact that these levies will impact and lower the prices of most smallholder crops that are exportable,” he said.
Nilkare said the timing of the CCDA levies and DLIR fee increases was a concern for the rural industry stakeholders.
“Is this a proper tax for climate change mitigation or another avenue to tax the already overtaxed rural industries, especially when only 30 per cent of collections will be allocated to the CCDA Mitigation Fund?”
Nilkare said the increase in the fees by DLIR was very insensitive.
He said this could not be the answer during this Covid-19 period, which has closed economies around the world and commodity prices were at their lowest in some time.
5 comments
The Climate Change Development Authority (CCDA) is a fake Authority created parallel to Environment and Conservation Authority (CEPA) by the O’Neil Government. A junior and incompetent lawyer who was related to the former PM was appointed as the CEO of CCDA. O’Neil strategically appointed his cronies in key entity like the CCDA expecting that millions of grants from G8 industrialized and developed countries would fall into least countries like PNG under the Paris Green House effect Agreement in 2016. However the US through President Trump withdrew its membership leaving the agreement into limbo until to date. Now the CEO of CCDA is looking for avenues to suck levies from a struggling industries which are the back-born of this country…..???
CEPA and Labour Dept seem fit to come up with ideas that are none existential and burdens the only industry that needs more attention and support.
Where have they been all those years when they are hardly seen in industries that needed them most? Have they physically set foot in mining/petroleum industries and caught a glimpse of the exploitation in resources, environment, labour, etc? Our people are underpaid, environment is exploited, logging happening at a very alarming rate. It’s been very long for the silent majority longing for CEPA/Labour to visit and address their grievances.
They are very stupid to burden the agriculture sector. That’s where the hope is for the future. Have they gone to logging? Oh shame! Remove those levies and organise yourselves and address the real issues. Wake up from you slumbers and see where need is. There are people who have waited so long for your interventions.
Hope you see well.
Malcolm, well said.
Someone is waking up after 45 years of long sleep. Sadly this is a desperate reactive approach, and there is nothing proactive about that decision.
Mr. Nilkare statements are very clear and if CCDA and DLIR did not see the negative effects of the decisions of increasing levies on Agrculture industry is killing the industry hence will have negative effects on PNG economy.
They supposed to provide incentives and promote Marabe-Steven gov’t to grow the economy through Agriculture and yet the gov’t institutions like DLIR and CCDA acting contrary and anti-government.
The DLIR and CCDA need reconsider and remove the high levies.
Another sob story from the Oily Palmers
Some facts
2006 price was $478 since then hasn’t been that low for past 13 years
It even reached in 2011 $1125
Still at end of 2019 it is $601
During this period the poor companies increased their plantation by a huge area so as to lose more money I suppose
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