Tax exemption for SMEs proposed

 SHIRLEY MAULUDU

TAX exemption for local businesses is a way to encourage the grassroots to engage in small-to-medium enterprises (SMEs), Prime Minister Peter O’Neill has stressed.

O’Neill said this during presentation of the draft SME policy and master plan by consultant Esther Igo on behalf of Ministry of Commerce, Trade and Industry on Wednesday, to members of Parliament for further discussions.

“The next thing we need to do under the tax review programme is that we have to give a minimum level of business activity where Papua New Guineans should not be paying tax.

“For example, if a business is going to turnover less than K5 million, then we should exempt them from being taxed.

“In that way, it encourages them to engage in businesses.”

O’Neill was also supporting a consultation team under the direction of Minister Richard Maru that put together the draft SME policy and master plan.

The draft policy highlighted the need to bring back the business reserved list.

“We all agree that we must bring back the reserved business list. 

“I think it is important that we secure business opportunities for our people,” O’Neill said.

The need restore the reserved business list for Papua New Guineans was pushed for by many MPs who were present during the presentation after it was determined that Papua New Guineans only owned 10% of businesses while the rest was controlled by foreigners..

The main goal of the policy and master plan was to promote the development of a competitive and sustainable SME sector but creating conducive environment for doing business and encourage entrepreneurialism and enterprising culture in PNG and for the citizens.