Official says investors leaving over new tax regime ‘not genuine’

By GYNNIE KERO
PNG Forest Authority managing director Tunou Sabuin says industry players who cannot adjust to the new policy and leave the country are not genuine investors.
Sabuin, who spoke to the media in Port Moresby yesterday in relation to the new tax regime on round log exports, said it was a government policy which was in the early stages of implementation.
He said this in response to a call by industry players who in a recent call to Prime Minister James Marape asked for the tax regime to be reviewed.
Sabuin said the industry claimed there was lack of consultation on the export tax on round logs of 59 per cent which came into effective this month. “We have taken full note of the timber industry through their association (Forest Industries Association),” he said.
“They (association) have come out and argued strongly and called on the prime minister to review the tax regime because of lack of consultation.
“This organisation (PNG Forest Authority) also was not consulted in regards to the new tax regime.
“But our position is that it is a good tax regime.
“It is only an increase depending on the different prices and the different species.
“The average is about 30 to 40 per cent increase from 32.5 per cent that is the current round log export tax.
“For example, if the price for a species is above US$100 (K341) then the increase in the round log export tax would be about 54 per cent.
If it’s above US$200 (K684), the increase would be about 30 per cent.
“It’s good for the country when we have a huge amount of loan to pay.
“The Government will be making a lot of money say K400 to K450 million from what it has been making in the past which was K300 to K350 million.”