Smokers, motorists hit with duties

THE government has retained the tax-free threshold of K10,000 on personal income introduced last year, but has hit motorists with hefty duties under the 2013 Budget and caused smokers to choke with a 10% across-the-board increase on tobacco products.
Other tariff increases came in the shape of a 20t hike on imported poultry to K2.20/kg and a 50% increase on the current imported price for plywood sheets or similar laminated wood of thickness not exceeding 6mm.
Under the tax schedule announced by Treasury Minister Don Polye yesterday, the customs tariff on brand new cars with engines from 1000cc to 3000cc and above was set at 60%.
The tariff on used or reconditioned cars with similar engine capacities was set at 80%.
Sports and racing cars face the highest tariffs of 110% (new) and 120% (used or re-conditioned).
The government said it had decided to increase excise duties on pre-used vehicles and impose a cap on the value of certain types of imported vehicles to prevent undervaluation, traffic congestion and to fulfil the country’s obligations under the Rotterdam convention on ozone depletion.
The government said tax hike on tobacco was made in recognition of the increased health risks associated with smoking and the need to consolidate gains from its initiative in providing free health care for all Papua New Guineans.
“Excise on tobacco has been increased by 10% to discourage smoking and minimise medical costs imposed on the government.”
The government expected taxation revenue to increase by K51 million next year.