The Review

The Government announced in early 2013 that a comprehensive tax review of the fiscal regime in Papua New Guinea would be undertaken.

Objectives and Scope

The Objectives of the Review are to:
  • To align PNG’s revenue system with its development aspirations of being a competitive middle income nation in the Asian century;
  • To realign the tax system to diversify the economic base by leveraging and strategically deploying windfall gains derived from non-renewable extractive sectors to support, stimulate and grow renewable and sustainable sectors such as agriculture, fisheries, tourism, forestry, added value processing, including growing and developing Small to Medium Enterprise (SME) sector.
  • To improve the competitiveness and efficiency of PNG’s tax system so as to attract capital and grow, retain and encourage investment, employment and economic development;
  • To enhance the fairness, simplicity and transparency of PNG’s taxation system and in so doing to build taxpayer confidence in our tax system;
  • To recommend practical options to change PNG’s tax mix between the levels of taxation on land (including resources), capital and labour;
  • To improve taxpayer compliance including considering options to enhance services to taxpayers and reduce the cost of compliance through the use of modern and user friendly technology; and
  • To review PNG’s non-tax revenues with the aim of ensuring that fees are appropriate, fair and cost effective.
The Scope of the Review includes:
  1. Personal Income Tax (PIT);
  2. Corporate Income Tax (CIT);
  3. Excise and Customs Tariff;
  4. Operation and efficiency of the Goods & Services Tax (GST);
  5. Mining and Petroleum Taxation Regime;
  6. Land, Property and Capital Gains Tax;
  7. Non-Tax Revenues (including charges and levies);
  8. Small Business Taxation (SMEs);
  9. Advantages and Disadvantages of Tax Incentives; and
  10. Tax Administration (including taxpayer compliance and the efficiency, simplicity, collection effort and protocols of PNG’s tax and revenue administration).

The Review Management Structure

The Review has a Committee – Secretariat structure. The Committee is appointed by the National Executive Council (NEC) and is technically and administratively supported by the Department of Treasury through the Tax Review Secretariat that it has established.

The work of the Review is broadly categorized into three major activities and managed accordingly:

  1. Stakeholder Consultations;
  2. Research and Policy Development; and
  3. Review Administration.

Latest Updates

Publication

06 Nov 2015

Publications

21 Sep 2015

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