Rise in funding needs see tax credit charge raised

THE Government has increased the percentage of provisions of the Tax Credit Scheme from 0.5 per cent to 2 per cent, according to National Planning and Monitoring Minister Richard Maru.
He said the increase was to enable the Government to fund major developments projects in the country.
He thanked the National Executive Council for approving the revisions to the policy and guidelines following the Infrastructure Tax Credit Scheme (ITCS) stakeholders’ workshop. The workshop was facilitated by the Department of National Planning and Monitoring in April.
Maru said the scheme was a very successful, effective and innovative instrument and funding mechanism for the Government.
Examples of projects under the scheme include the Oil Search National Football Stadium, and the highway from Gulf to Southern Highlands which will be completed after the moratorium on the the scheme has been lifted.
The Government also made changes to the policy, including that the Central Supply and Tenders Board be the only body to offer and process tenders.
Maru said tax credit funds belonged to the Government.
“Therefore, it makes sense that no company boards must be involved in tax credit tenders. Company representatives will be only involved in the technical evaluation committee stage,” he said.
“Under the revised policy, companies in non-resource projects will now be allowed to participate in the tax credit scheme.”
He also thanked resource development companies and those in the agriculture sector who participated in the ICTS. He invited other resource sector companies to come on board and be development partners with the Government.