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Showing posts with the label TAX

PNG’S 100 DAY PLAN – A SLOW KICKSTART WITH SOME POSITIVES

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by PAUL FLANAGAN PNG’s new Treasurer and DPM, Charles Abel, has released the promised 100 Day Economic Stimulus Plan (see here). Overall, there are some positives in the plan. But politics is already circumscribing necessary actions to get PNG back onto the right economic path. Starting with the positives, even having a 25 point plan is a useful statement that the new government recognises PNG’s economic challenges. The five elements of the plan are appropriate. There is a focus on raising revenues as well as fiscal discipline. Population policy is given priority.  The plan announces the suspension and review of some scary micro-economic policies in areas such as land, agriculture, bio-security and mining. Some politically brave action is foreshadowed to at least temporarily reduce politicians’ discretionary electorate spending (PSIPs and DSIPs). There seems a commitment to on-going sensible strategic budgetary and planning processes. There is no mention of the absurd “gold bullion ba…

AN INSIGHT INTO OUR BUDGET

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by M.V LASIA

PNG has recently made the headlines across the globe for being in a financial debt crisis and struggling to pay its debts and expenses.
It is no secret the O'Neill Government has had cash-flow crisis and only managing to keep its head above water.
What little tax income it earns each month is being used to ensure public servants are paid every fortnight and any difference is directed to propping up its free education policy and partly pay for its inflated contracts.
Meanwhile Peter O'Neill claims the country's financial crisis has been caused by dramatic fall in world commodity prices placing a strain on economies around the world.

So is Peter O'Neill telling the truth? Short answer is No. 
The PNG Government funds its operations, development projects and services its debt obligations through the collection of taxes and overseas grants (donor funding). Tax collection or revenue is categorized into three main parts.

1) Tax on Income and Profits (company, wag…

O'NEILL CONTINUES TO LIE ABOUT THE ECONOMY

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by BRYAN KRAMER

Prime Minister Peter O'Neill continues to issue misleading statements about the real state of the economy including the Government's true debt levels.
On 3rd March 2016 O'Neill delivered a speech before Australian National Press Club in Canberra where he highlighted serious decline in world prices for our oil and gas and our minerals over the last 12 to 18 months has had a serious impact on our economy.
"I do not want to sugar coat the pressures that we are facing with our people. We have an open dialogue on what we are doing to confront these challenges" he said.
He went on to explain just a couple of years ago - "royalties and taxes from the resource sector totalled close to two billion Kina. Last year it amounted to just 260 million Kina - barely one eighth of the previous year’s revenues, and we expect the same in 2016" he said.
He said as a result his Government was forced to revise his budget estimates downwards and live with…