War of words over tax goes on

By CLIFFORD FAIPARIK
The war of words between Treasurer Charles Abel and his Opposition Shadow Ian Ling-Stuckey over taxes continued yesterday.
Abel, pictured, said the Government had increased the tax-free threshold for majority of the Papua New Guineans not to pay income tax.
Ling-Stuckey, however, rebutted that Government was hurting most Papua New Guinea families with massive tariff tax increases.
“What the Government has done is increase the tax-free threshold,” Abel said.
“That means that income earners at the lower end of the tax table, from zero to K12,500, do not pay tax.
“Previous to that, in 2018, there was no tax payable from zero to K10,000 per year.
“In 2019, the Government has increase the tax free space by K2500 up to K12,500.
“So those earning up to K500 per fortnight don’t pay any tax.”
“A couple of years ago, our Government increased the tax threshold from K6000 to K10,000.”
Abel said those earning from K12,500 to K20,000 would pay 22 per cent tax, and those earning from K20,000 to K33,000 would pay 30 per cent.
Ling-Stuckey countered that Government was increasing taxes on genuine household necessities by up to 25 per cent and cutting taxes on household luxuries by 30 per cent
“The O’Neill/Abel PNC Government is hurting most PNG families with massive tariff tax increases,” he said.
“In its 2019 Budget, through 37 pages of detailed information, the Government has snuck in or confirmed tax tariff increases on 664 items.
“This is on top of the 254 tariff increases introduced last year.
“This includes new taxes on canned tuna and mackerel of 25 per cent, taxes on imported chicken more than doubling to K3.50 per kg, taxes on milk products of 25 per cent, taxes on cooking oils of 25 per cent, increased taxes on tinned meat of 20 per cent and the list goes on.
“Tax tariff increases mean increased prices, even for locally-produced items because it removes price competition.
“Most of the tax tariff increases are on family food products, although there are major increases on other household necessities such as soaps, toilet paper and laundry detergents as well as clothes and building products.
“Doesn’t the government understand that people are already struggling under PNG’s high cost living?” asked the Shadow Minister for Treasury and Finance, Ian Ling-Stuckey.
”But there is some good news – at least for the besties of the prime minister and treasurer.
“The Government has also decided to cut some excise taxes.
“Treasurer Abel stated, when introducing the 2019 Budget, that he was cutting excise on 11 formerly ‘luxury’ items that are now considered household ‘necessities’.
“While increasing taxes on family food and household products, the PNC Government has decided to cut excise taxes from 30 per cent to zero for perfumes, Sony Playbox consoles, microwaves, electric clothes dryers, TVs, camera lenses, binoculars, projectors and even electric hair stylers.”