PM reveals tax deduction plan

By SHIRLEY MAULUDU
PRIME Minister James Marape says his Government is looking at tax incentives, one of which will be 100 per cent tax deduction on capital expenditure.
He said this would be one of the incentives that his Government was looking at introducing to support the growth of businesses in the country.
Marape said this when addressing the business community during a breakfast event yesterday on the 2020 Dubai Expo that Papua New Guinea would be taking part in October.
“We also have tax review to attract foreign direct investments,” he said.
“For those of you who are partnering with us in this sort of expo, tax incentives are being looked at.
“Some examples, a 100 per cent deduction for capital expenditure.
“A 100 per cent deduction on assets used in the manufacturing processes.
“Exemption of income derived from export of manufactured goods.
“These are being looked at.
“A 10-year tax exemption for businesses who are located in some parts of our country, especially the special economic zones.
“Tax policies and incentives are some of the things we are looking at in terms of public policy.
Marape urged the private sector to take advantage of the Dubai Expo to market the country’s products and services.
“When the Dubai expo was presented to us, we thought instead of sitting back why don’t we step out and show the world who we really are,” he said.
“When you have Total investing in PNG, when you have ExxonMobil investing in PNG.
“Interestingly enough, ExxonMobil came into PNG in 2007 or 2008.
“And in 2009 we had the global financial crisis.
“At the back of the global financial crisis, ExxonMobil descended into our country.
“Today, ExxonMobil tells me, PNG LNG project is one of the success stories, in fact the production efficiency is at global high as far as ExxonMobil is concerned.
“That in itself is a good story for us.”