Plans for incentives, tax holidays

 Prime Minister Peter O’Neill says there will be “very generous incentives”, including tax holidays, for selected industries like tourism, agriculture and manufacturing in the 2015 Budget. 

He said that in his address at the PNG Business Advantage 2014 Investment and Infrastructure Summit in Port Moresby yesterday.

O’Neill said PNG was approaching the presentation of the 2015 National Budget and “without getting into the details of that, I wish to say there will be very generous incentives, including tax holidays for selected industries like tourism, agriculture and manufacturing”. 

“We will give extended and very generous incentives in those areas so that we can encourage investors to invest to enable employment and businesses opportunities for our citizens as well,” he said

“I want to assure that our country’s management is in good hands, our future is very bright, and it is time to invest in PNG.”

O’Neill said there must be radical changes and reforms in the relationship between government and business.

“I believe the time has come to substantially reduce the involvement of government in business,” he said.

“The partial sale of Air Niugini needs to be just the start … but a very important start. What needs to happen is that we must separate state-owned businesses that are essential service providers from those that are propped-up businesses that ought to be disposed of.

“This is an issue we, as a nation, must confront and we must confront it without delay before more millions of taxpayer funds is lost each year.

“I urge you to debate this vital issue and give constructive views so that we can embrace the best way to downsize the involvement of government in business.

“The history of government’s running businesses is shameful. And every government since independence has to shoulder the blame – ours included.”