Photo Credit: The Department of Lands & Physical Planning of Papua New Guinea
Prime Minister James Marape has stated that his government is considering tax incentives, one of which will be a 100% tax break on capital expenditures.
He stated that this was one of the incentives his government was considering implementing to help businesses thrive in the country.
Marape made the remarks while speaking to the business community at a breakfast event on Papua New Guinea's participation in the 2020 Dubai Expo, which will take place in October.
“We also have tax review to attract foreign direct investments,” he said.
“For those of you who are partnering with us in this sort of expo, tax incentives are being looked at.
“Some examples, a 100 per cent deduction for capital expenditure.
“A 100 per cent deduction on assets used in the manufacturing processes.
“Exemption of income derived from the export of manufactured goods.
“These are being looked at.
“A 10-year tax exemption for businesses who are located in some parts of our country, especially the special economic zones.
“Tax policies and incentives are some of the things we are looking at in terms of public policy.
Marape called on the business sector to use the Dubai Expo to promote the country's goods and services.
“When the Dubai expo was presented to us, we thought instead of sitting back why don’t we step out and show the world who we really are,” he said.
“When you have Total investing in PNG when you have ExxonMobil investing in PNG.
“Interestingly enough, ExxonMobil came into PNG in 2007 or 2008.
“And in 2009 we had the global financial crisis.
“At the back of the global financial crisis, ExxonMobil descended into our country.
“Today, ExxonMobil tells me, PNG LNG project is one of the success stories, in fact the production efficiency is at global high as far as ExxonMobil is concerned.
“That in itself is a good story for us.”
Reference:
Mauludu, Shirley. The National (16 July 2021). “PM reveals tax deduction plan”.
