The Internal Revenue Commission (IRC) of Papua New Guinea (PNG) in its endeavor to enable ease in tax payments and increase tax collection, has put in measures to improve all that and one of such is the Tax Portal (myIRC), which taxpayers and tax agents are encouraged to fully utilize. Ms. Ketty Masu, the Director of Taxpayer Services and Policy Division who spoke at the recent annual Tax Agent Liaison Group Meeting in Port Moresby, said the tax portal is a new way of communication between taxpayers, tax agents and the IRC. “It’s a good channel of communication, with this channel we can have an oversight of what’s coming in, when its coming, because we get a weekly report and if there are things that are outstanding, we follow up on that,” said Ms. Masu. “Benefits for you as tax agents, you make your payment at ease, submit and manage your lodgments online.” The IRC was also credited for the record 2024 National Budget total, mainly due to the improvements made in tax collections from its measures employed, which led to increased tax revenue. As such, the more use of the online tax system, should see this further improved. Ms. Masu further encouraged those tax agents who have not registered yet, to start registering and enjoy the benefits of the online system. Registering for myIRC will enable agents to make instant online payments and interact with IRC services using smart phones, tablets or computers. She added that there are guides on the myIRC webpage with step- by- step instructions and guidelines that can be downloaded to assist those who are registering.

The long awaited restart of operations for the Porgera Mine in the Enga province is set to take place next week with the New Porgera Limited (NPL) announcing that the mine will reopen for business on the 22nd of December. NPL in a statement today stated that all legal and contractual conditions necessary for the reopening of Porgera Mine have now been met and the mine is set to officially restart operations, with the first gold expected to be poured in the first quarter of 2024. As Prime Minister (PM) James Marape noted in a speech today in Sydney at the 17th Papua New Guinea (PNG) Resources & Energy Investment Conference, the long road to Porgera’s reopening has reached the finish line. The result is an unprecedented partnership between PNG and two leading global mining companies, Barrick Gold Corporation (Barrick) and Zijin Mining, which for the first time gives majority ownership in a major resource project to Papua New Guinean shareholders. New Porgera will deliver unprecedented benefits to the people of PNG. Over the 20-year life of mine, PNG shareholders, which comprised of Porgera landowners, the Enga provincial government and the State, will receive 53% of Porgera’s overall economic benefits. The investors will share the remaining 47%. At an assumed gold price of US$1,800 per ounce, PNG shareholders can expect to receive nearly US$7.3 billion (approximately Kina 27.6 billion) over 20 years and US$2.8 billion (Kina 10.6 billion) in the first ten years. New Porgera Limited will be managed by Barrick (Niugini) Limited and employ more than 2, 300 people by June 2024 and over 3, 000 by the end of 2024.

The National Government has reduced the Log Export Tax in the 2024 National Budget to address concerns pertaining to the performance of the country’s forestry sector. According to the Treasurer, Mr. Ian Ling Stuckey, the State lifted the Log Export Tax in the 2023 Budget to a whopping 70% from the previous 50%, saying that the increase was to raise additional revenue to support the establishment of the Biodiversity and Climate Change Fund and to strengthen downstream processing policy of unprocessed logs. However, in the 2024 Budget, the Log Export Tax is expected to be reduced back to 50%. The reason being that the forestry sector has been experiencing low demand in export market for logs during the year, the bad weather affecting production and the current unfavorable taxation regime. “After close consultation with the forestry sector on the impact of the current log export tax, it was agreed to introduce a regime which is lower than the current log export tax regime,” stated the Treasurer. “It was suggested that the current regime provides an unfriendly business environment to support the logging industry to go down the path of downstream processing.” Therefore, implementing the regime will allow the forestry sector to plan and develop capacity for downstream processing in consistent with the government’s objective to ban export of unprocessed logs by 2025; hence, focusing on downstream processing. This new measure will come into effective on the 01st of January 2024.

Families on annual income salaries ranging from K20, 000 and below can expect to be excluded from paying income tax next year after the government moved to make permanent the Income- Free Threshold in the 2024 National Budget. The Treasurer, Ian Ling Stuckey said this should continue to assist low and middle- income families to be able to support themselves in light of the high cost of living currently experienced. “The Marape- Rosso Government will make permanent the increase in the tax- free threshold to K20, 000 at an estimated cost of K280 million,” said the Treasurer in his recent budget speech. “For workers earning K769 per fortnight or more, this will provide a fortnight savings of K63, which can be used to help with household purchase.” In the 2023 Budget, the tax- free threshold was increased from K12, 500 to K20, 000, mainly intended to provide relief to low and middle- income earners during times of inflation, as a temporary measure just for one year and will expire on the 31st of December, 2023. The Treasurer said that in the 2024 Budget, the government is making permanent the tax- free threshold and repealing the dependents rebate through the Income Tax (2024 Budget) (Amendment) Bill, so to maintain the purchasing power of money and reduce compliances cost and simplify administration. “Workers earning up to K20, 000 per annum no longer have to pay tax on their income. This will directly benefit over 37, 000 salary or wage tax payers by increase in their disposal income.” “The new tax – free threshold of K20, 000 removes 22% rate bracket and means that only those with an annual income exceeding K20, 000 will pay 30 toea for each Kina,” explained the Treasurer. This new measure will come into effect as of the 01st January 2024 and onwards.

A local company, Hela Investment Ltd, has partnered with Puma Energy through a Memorandum of Understanding (MOU) that aims to bring participation from Puma Energy to co- invest in sustainable economic projects in the Hela province. This recently signed MOU has forged a new development partnership between the people of Hela province and Puma Energy, opening up opportunities for both parties to invest in. “This MOU sets the pace for participation in socio-economic projects especially within the clean energy space which Hela Investment has engagement within,” said Puma Energy PNG Chairman and Managing Director, Mr. Hulala Tokome. The MOU was agreed between Puma Energy PNG and Hela Investment Ltd back in November, following amicable discussions between Hela Investment and Puma Energy Chief Executive Officer (CEO), Hadi Hallouche, including PNG management in Port Moresby. “Puma Energy’s purpose is to energize communities and we stand committed to delivering this purpose through this partnership, a partnership that aligns with the National Government’s current and future development plans that aims to expand access to sustainable infrastructure and services to the people of PNG.” The CEO of Hela Investment Ltd, Mr. Gedisa Igah during the MOU signing, said; “Hela Investment is excited to partner with a global company such as Puma Energy to explore investing in projects, including within the clean energy space, to bring long term sustainable prosperity, not only to the people of Hela, but PNG as a whole.

The Chief Executive Officer (CEO) of Puma Energy was in country recently for a visit and wants the matters pertaining to the Foreign Exchange (FX) and fuel supply issues to be resolves, so as to restore confidence in the service that the fuel company is providing in the country. The CEO, Mr. Hadi Hallouche said Puma Energy is committed to Papua New Guinea (PNG) and it would great to see the FX issue regarding the purchase fuel, fully resolved going forward. “We are committed to PNG’s future; however, I cannot stress enough the seriousness of the current short-term issues and the problems they can potentially create.” “We will continue to work closely with BPNG (Bank of PNG) to manage the current FX challenges; however, we urge BPNG and BSP to work with us in maintaining our banking relationships. We remain solution focused and committed to addressing any concerns,” added Mr. Hallouche. Following the Government’s Taskforce, Puma Energy believes it has resolved previous issues with BPNG on documentation requirements and now is looking forward to working with the BSP Financial Group Limited to confirm ongoing banking services. Puma Energy has invested over $650 million in its PNG operations since 2014 and currently operates the only storage, logistics and distribution network capable of supplying fuel nationwide. The company currently employs 500 skilled workers, the vast majority of whom, including management, are local. In addition, the company has created an additional 2, 500 indirect jobs in PNG throughout its supply chain. “Puma Energy is fully committed to PNG. We’ve invested in and upgraded our operations, and we’ve grown and trained a highly skilled local workforce. We are proud to contribute to PNG’s economy and success,” said Mr. Hallouche. Meanwhile, the Puma Energy CEO visit to PNG involved dialogues with government and business leaders in both Lae and Port Moresby cities, where they discussed sustainable solutions that will work amicably for all parties in the industry, the business sector and the community at large, in light of the recent fuel issues affecting customers nationwide.

The country will in the coming weeks and months, see the flights of the massive C-17A Globemaster aircrafts over Papua New Guinea (PNG) airspace as part of a big logistical training exercise conducted by the militaries of three countries. Two of these aircrafts were involved in a parachute drop of fifteen Australian Army personnel as part of a demonstration by the Royal Australian Air Force (RAAF) C-17A over Nadzab Tomodachi International Airport just outside Lae, yesterday. The two C-17A aircraft are currently flying in PNG skies as part of Exercise Global Dexterity 23-2, which will involve up to three C-17A aircrafts from the RAAF, United States Air Force (USAF) and the Royal Air Force (RAF). The Australian Defence Force (ADF) appreciates the support of the PNG Government and PNG Defence Force, and wider community to allow the RAAF to test their skills in one of the world’s most complex flying environments. The training achieved in PNG during Exercise Global Dexterity 23-2 ensures Australia and its allies can deliver humanitarian assistance anywhere in the Indo-Pacific. Australian Defence Adviser to PNG, Colonel Travis Gordon, said the exercise will predominantly take place in Australia, but will include two missions to PNG. In addition to the demonstration that occurred yesterday, all three aircraft will conduct low-level flying training in the Central Highlands on 6th December. These aircraft will fly through valleys travelling east from the vicinity of Telefomin towards Mt. Hagen and Chimbu; before turning north towards Madang, and then eventually landing at Momote on Manus Island. The C-17A aircraft will then be loaded with ADF vehicles and equipment used in Exercise Puk- Puk for their return flight to Australia. “During Exercise Puk- Puk, the ADF worked closely with the PNG Defence Force Engineers on partnership and capacity building exercises, including refurbishment of facilities and accommodation, drainage, and road repair on Manus Island,” said Colonel Gordon. The PNG Defence Force personnel will integrate into Exercise Global Dexterity 23-2 by supporting ADF personnel prepare the clearance zone at Nadzab and help load and secure equipment being extracted from Momote. “This cooperation between our forces builds on our longstanding defence partnership and enhances our ability to support the PNG Defence Force on future peacekeeping and humanitarian and disaster response operations,” said Colonel Gordon. Missions during Exercise Global Dexterity 23-2 may be subject to amendment or cancellation at short-notice.

The sky over the Nadzab Tomodachi International Airport just outside Lae city was invaded today by two C- 17A Globemaster transport aircrafts dropping down man on parachutes and cargoes as if to overrun and take control of the airfield, but it’s not that, rather it’s a ceremony to mark the 80th anniversary of the allied landing at Nazab during World War Two. Speaking at the significant ceremony today at Nadzab, the Australian Acting High Commissioner, Dr. Joanne Loundes, gave a brief history of what happened all those years ago that turned the tide in the Pacific War against imperial Japan. [caption id="attachment_47765" align="aligncenter" width="2185"] Australian Acting High Commissioner, Dr. Joanne LoundesPC: Emmanuel Maipe[/caption] She said 80 years ago, 302 United States (US) aircrafts from 8 airfields and 6 US destroyers worked together to capture the port of Lae and on that day, 34 Australian paratroopers along with their US counterparts dropped down from their aircrafts to secure the Nadzab airfield to turn it over to the hands of the allied forces. “This is a story of partnership and cooperation, and working together, the soldiers played a key role in securing this important airfield, enabling the liberation of Lae,” the Acting High Commissioner said. “The Papuan Infantry Battalion, which in time will become the predecessor of the modern PNG Defence Force, played an important role in supporting the operation, by working to prepare the airfield for allied aircrafts to land.” [caption id="attachment_47766" align="aligncenter" width="1822"] ADF Troops Re-enacting the Landings at NadzabPC: Emmanuel Maipe[/caption] However, 80 years have gone since those days of war and in this modern times, these ties and cooperation continues to remain as strong as it was in those days. “Our defence and security relationship with Papua New Guinea (PNG) remains as close and as mutually reinforcing as ever. Our shared commitment to peace and security has not faltered and nor have we lost sight of the fundamental truth of war, is no path to peace.” [caption id="" align="aligncenter" width="2560"] ADF Troops in Full Gear[/caption]   PC: Emmanuel MaipeShe said while it is important to commemorate heroic operations from the past, it is important to point out that everyone and every country has the responsibility to prevent wars from happening. Wars only bring about destruction and disharmony in the global community and affecting the basics to enable the survival of humans on this planet. Meanwhile, present at the commemoration of the 80th anniversary of the landings, were delegates from the Japan Embassy in PNG, the United Kingdom, United States, New Zealand, PNG and Australia.

The National Government’s Connect PNG Program has received a sizable allocation in the 2024 National Budget, showing the government’s focus on continuing to create road links to bridge service and development to the people in parts of the country. The Treasurer, Mr. Ian Ling Stuckey said the allocation comes under the Capital Budget of K10.7 billion, which in itself is the largest in the history of National Budgets in Papua New Guinea (PNG). “The largest part of the Capital Budget is our own funded Public Investment Program, the PIP budget,” said the Treasurer. It is under this PIP budget that the funding allocation for the Connect PNG program is made. “The Marape- Rosso Government is the infrastructure government, providing funding for our historic PNG Connect Program, including K905 million for missing links and K100 million in arrears- clear funding of over K1 billion.” Touching on the successes of the program so for, Mr. Ling Stuckey said across PNG the people are now seeing the benefits of these massive infrastructure developments, the recent one being the new road link created to the Telefomin district in the West Sepik province. “Major travel time savings and massive reduction in vehicle operating cost, by the trucking companies and PMV operators.” He said this is a clear example of how good capital investments can reduce business cost and this should be passed on as lower costs to consumers, helping fight cost of living. The Connect PNG Program is the government strategy aimed to foster sustainable socioeconomic development and national unity, by enhancing the key economic road transport network connectivity across the Momase, Highlands, Southern, and New Guinea Islands regions over the next two decades.

The Commissioner General of the Internal Revenue Commission (IRC), Mr. Sam Koim is not happy with the 2024 National Budget that was presented by the government to parliament this week in Port Moresby, because it did not include some of IRC’s legislative proposals. Speaking to tax agents at the opening of the annual Tax Agent Liaison Group Meeting on Wednesday in the city of Port Moresby, Mr. Koim said the proposals for legislatives for the improvement of tax administration in collecting tax revenue, was not taken into the budget for next year. “The budget was disappointing, I have to say,” said the Commissioner General. “I was disappointed in the sense that all the legislative proposals that we have been pushing to help us set up the foundation for some of the changes that we are doing to introduce some of the administrative reliefs that we have been seeking, have not been pushed through.” Mr. Koim said the record K27.3 billion National Budget for 2024 was much on the back of increased tax collection, mostly through administrative interventions done by the IRC. “It takes two or couple of interventions, one is the general growth of the economy, but the tax administration must have the capacity to extract a certain portion of that growth through tax administration,” explained Mr. Koim. He went to say that the IRC is doing its best to collect tax and thanks the taxpayers as well for their compliance in filing tax on time, helping the IRC do its task of collecting tax revenue for the State, but the exclusion of the proposed legislative changes is a slap in the face of the IRC. “We are receiving less help from where the tax policy resides, the responsibility of tax policy.” The proposed legislatives were supposed to enable further ease in the collection of tax revenue in 2024 onwards; however, with their exclusion, things will be a bit tough going forward for the state institution. Nevertheless, the Commissioner General said that the IRC will continue its mandated responsibility to assist in funding yet another record budget in the coming year, though challenging. “We will have a lot of challenge in pushing our way to create a revenue like we’ve done,” Mr. Koim plainly stated.

The continuous law and order problem, which saw an increase this year, has been an eye opener for the State, resulting in the government allocating over K200 million for the police in the proposed 2024 National Budget. Speaking during the introduction of the record K27.3 billion 2024 National Budget this morning, the Finance Minister Rainbo Paita said the huge K287 million allocation will greatly assist police in their welfare and operational matters. "This has not happened before. We have put in a massive allocation to cater for their needs," said the minister. Mr. Paita said this should cater for housing, recruitment, and logistical support like investments in vehicles and other enablers to ensure police officers do their jobs effectively. The massive budget allocation is derived from the K10.7 million Capital Budget (Development Budget), under the K7.3 billion Direct Government Funding allocation.

The people of Abau district of the Central province will in the near future have the services of electricity and even water, reaching them. This was made known in this sitting of parliament by the Minister for State Enterprises, William Duma, when responding to questions from Member for Abau, Sir Puka Temu, on the status of electricity supply to the Central province, especially his electorate of Abau. Sir Temu said that with the new state of the art Edevu Hydro dam coming on line, there is now sufficient energy supply that would reach both the parts of Central province Eastwards and Westwards and to the Gulf province. He also mentioned that the Edevu Hydro belts out 54megawatt of electricity and Port Moresby city only currently needs 125megawatt. However, he said that the current supply to the capital city is 152megawatt. This means that there is a 27megawatt of power in excess. Sir Temu asked for the distribution of that 27megawatt to his electorate. Meanwhile, Minister Duma revealed that the ground works are now in progress to have electricity supplied to parts of Central province and into the Gulf province as well apart from Port Moresby, and Abau would also benefit from it. “This time around, the people of Abau will receive power. All we need to do now is for the member to work closely with us and we will make sure our people out there receive the power they entitled,” said the minister. “In addition to this, there are also plans by Water PNG Limited to make sure there is reliable and consistent water supply to the town of Kupiano. So, I can assure the Member that they should be able to get someone form of power connection towards the middle of Next Year.”