Tax costing jobs: Namah

The National Main Stories

AT least 1,000 people are without jobs as a result of the new taxes imposed on the forest industry in the 2020 Budget, according to Opposition Leader Belden Namah.
He called on Prime Minister James Marape to review the additional taxes recently imposed on the industry.
Namah said a company in Gulf had closed its operation when the new tax measures came into effect on Jan 1.
In a paid advertisement on Tuesday, the PNG Forest Industries Association had described the recent budget tax measures as “massive, unjustified, unfair and discriminatory”.
The association said with the log export levy, the current export tax rate was 35 per cent. The new imposed export tax rate is 59 per cent.
The association had cautioned the Government that because of it, there would be an increase in unemployment in rural areas, a decrease in investment in the forestry sector, and a dent in development opportunities for landowners.
Namah said: “The new tax measures will put genuine logging companies off business and will invite dodgy illegal loggers to the country.
“Since introduction of this new tax, in Gulf province alone, 1,100 jobs have been lost. Already one company has given notice that it is shutting down its operation. Three rural airstrips and barge services to the people will be suspended. K1million in wages and K2million in royalties are now history.”
He said the forest industry had been contributing less than 10 per cent to the national gross domestic product.
He said forestry was the most recognised industry which had provided services to the people.
“Where the Government cannot build roads, timber companies are actually building roads into villages.”

10 comments

  • Good to see the logging companies getting value for money for their er “sponsorship” of our politicians.

  • The geniune loggers are geniunely destroying the source of livelihood. At least the 1,100 plus and LOs and future generations have a sustainable source of livelihood povided by their forest. The logging companies are owned by one or two individuals. The forest is owned by the thousands. Either keep raising the levee or stop logging.

  • Can the government review it’s tax rate because it will affect the simple people in the rural areas once the
    logging companies shut down their operations.

  • The logging industry has teap this nation and devastered the environment due to greed by politicans with their foreign cronies especially Asians.
    It high time to get hard on the industry that has taken advantage of indigenous people of PNG whose land was exploited by greedy people.

  • Taxation system in PNG is one the key obstacles to the development and prosperity of people of Papua Guinea. While the Government of PNG thinks increasing taxes will lead to more money in the national budget to provide development and services to the people. But instead, it does the opposite by denying the people their rights to develop and prosper through their own Initiatives and efforts.

  • If that company is a local company then the the government need to review the Tax Act, if that company is a foreign company then just let it go, there’s logging companies who are willing to come in and do longing in PNG by enduring the tax rate charged. Regarding the locals who are jobless, it is for a short time and they should be ok when a new company comes in.

  • Logging companies are not feasible anymore in PNG unless companies are owned by resource custodians. These foreign companies have destroyed our forest whilst our people have suffered so much with proper services. Few politicians benefit so much from this industry and will defend with tooth and nail. This is a welcoming step for government to increase the tax.

  • Get them out, they are destroyers and not caring, establish government companies to log, replant and comply with forest regulations. Restore employments.

  • While tax payers in Papua New Guinea are struggling to for decent home and sustainable standard of Living.Politicians are living a luxurious life on Tax payers money. A generational gap has been created the general perception is that, politician are coming up with policies for ordinary citizens who are users of public schools,public hospitals,public motor vehicles and public services while politicians are served by private schools,private hospital,private cars and even private servants.PMJM Instead of taking it back,we the ordinary citizens are are giving it back to the politicians.If this is a puzzle take it on as a challenge and make a difference for your country with Home Grown Tax policy instead of Hanging on to Foreign tax ideas.

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