Super tax ‘lazy’ way of raising funds

By SHIRLEY MAULUDU
THE additional profit tax introduced by the Government is a lazy way of raising revenue for the country, an official says.
Executive officer for the Association of Superfunds in PNG, Vera Raga, was commenting on the bill passed by Parliament recently, which was aimed at taxing companies that owned more than 40 per cent of market share.
Industry leaders in the banking and telecommunications sectors, Bank South Pacific and Digicel PNG, are expected to be impacted significantly by the tax which would affect their operations and dividends to shareholders.
“Workers have been overtaxed, now the Government is levying BSP – a key financial institution – that has over the years been paying substantial dividends to the superfunds which have contributed to the annual crediting rate of members both in the public and private sector,” he said.
“Workers are taxed up to 42 per cent of their gross pay on a fortnightly basis and are already feeling the pinch. Are parliamentarians paying the same tax rate? The short answer is ‘no’.”
He said the Government needed to be exploring other income streams including levying oil and gas on production, downstream processing, new businesses, tourism, fish and timber.
“Workers are you aware of what the Government is doing? Should you not be concerned? Why are you passive on this matter which concerns your welfare?”
PNG Trade Union Congress secretary-general Anton Sekum said the levy imposed on BSP and Digicel was arbitrary, discriminatory and punitive.
He said the reason given by Treasurer Ian Ling-Stuckey for the taxes to fix a broken budget due to Coronavirus was an insult to Papua New Guineans’ intelligence.
Raga said BSP would not suffer any consequences but workers who were members of the superannuation funds.