Papua New Guinea: Tax measures in budget 2022

A re-write of the income tax law is now expected in 2023.

A re-write of the income tax law is now expected in 2023.

The 2022 budget, presented 25 November 2021, contains the following tax proposals:

  • A “market concentration levy” on commercial banks and telecommunications companies that have more than a 40% market share. This measure would apply only to one of the four commercial banks and to one telecommunication company. It is the government’s view that a “dominant player” in the market is able to collect “super-normal profits” and therefore the market concentration levy is a claw-back of those “super-normal profits.”
  • The alcohol and tobacco industries would receive direct assistance with the reduction of the bi-annual excise indexation rate to 2.5% (from 5%).
  • Relief would be provided to refined petroleum importers.

A re-write of the income tax law is now expected in 2023. As in previous recent budgets, there has been another reprieve from the introduction of capital gains tax.

Read a November 2021 report [PDF 760 KB] prepared by the KPMG member firm in Papua New Guinea 

 

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