Polye reveals tax review will see changes in oil, mining

National, Normal

The National, Thursday June 20th, 2013


THE oil and mining sectors are expected to face changes in the tax regime review under progress, acting Prime Minister Don Polye said.

Polye, also the Treasury Minister, said in a statement that although he could not preempt the changes in the review and the recommendations made by the review committee, it was possible that changes would take place in the mining tax regime for the oil and mining sector.

“I think there’ll be some changes but I do not wish to preempt any changes because it has to come from a recommendation by the tax review panel that the Government appointed recently,” Polye said. 

He said the International Monetary Fund had also done specific review work on the extractive industry, mining and petroleum sectors. They will make the review available to the taxation review panel chaired by former IRC chief Sir Nagora Bogan and his deputy David Sode, the PNGSDP chief executive officer and a former Internal Revenue Commissioner. 

 “I want to see a tax regime that is not only equitable, fair and enabling that can grow the sector but one that creates a level playing field for all investors in the extractive industry,” he said. 

“I believe the taxation regime now has some level of vagueness and disparities. We need to look at the perspective to be properly addressed so that every investor, operator and the business is aware of the conditions and guideline.

 “The review will not leave the stakeholders out of the process. 

“My instruction to the IMF is that they should engage the views and participation of all the stakeholders in the industry and investors to gauge their views and have a comprehensive yet an overarching and broader perspective. 

“I will have to look at that before it goes to the cabinet.”