There needs to be a review on the current salary taxes. It is too high. The government will get tax from the LNG project in the Billions. Why does it have to make the average wage earner suffer with exorbitant tax rates.

I'm being taxed at 35% of my salary. I think that is too high. The government gets more then enough from the mining and petroleum industries.

I'm not a tax expert but I am entitled to my opinion and i propose that it be reduced to 10% or 15%.

This is a tangible way for the ordinary citizens of this country who are not landowners to benefit from the mining and oil boom.

People in Sweden are taxed at about 70% and there are millions of PNGeans who make far far far less money than you do if you pay 35% tax.

Stop being a greedy whinger and look at the reality. You're the elite and you should pay for the privilege.

@ Bullcrap. You have got to be joking. What privilege? Are you talking about the non existent road infrastructure and dilapidated health system.

What privilege? Prime Ministers expensive private jet and his frequent holidays to exotic destinations.

What privilege? Substandard education for my children. A weak and corrupt police force.

Who cares about what goes on in Sweden!!! I'm guessing they pay that much tax because they don't have to contend with sky high food prices and other basic items.

And for the record I want tax reduction for all wage earners not for myself.

You gotta be kidding me!

You and I are on a computer, on the internet. What percent of the population you think is in our category?

Employed. Either you're employed or maybe you're leaching off someone else who is employed to be able to be on the computer and on the internet.

ONLY 15% OF OUR ENTIRE POPULATION IS EMPLOYED

Our country taxes me at 35% too, and i do consider myself fortunate, but when i look around at the state of our public infrastructure and utilities, i am pissed off. Really WTH are they doing with my hard earned money? Does it get anything done or just lines the pockets of politicians? Something worth thinking about is why are government employees taxed? They should just get their net pay and forget the tax, it makes more paperwork, harder to follow money trails and pulls out money that i work hard for in order to feed an already overweight pollie. The government mismanages our money on such a grand scale that only people here seem not to know what's going on.

So accept your tax but protest your government's mismanagement!

Come on people!

Your greed is clouding your common sense!

When you calculate the low percent of the 15% of employed citizens who earn enough money to pay ANY TAXES (and remember, that 15% doesn't include babies, but only employable age people) and add up the actual taxes they pay in one year, you'd find that it isn't enough to even fix the potholes of Lae.

We've all had math. Let's use the skills we learnt before we kneejerk react to things we don't like. The whole purpose of us going to school for so long is so that when we talk, we actually have some mental reasoning in back of our statements.

The government received piss poor money from employee taxes. If it weren't for the resource royalties, VAT, import duties and some company taxes (most companies use slimy creative accounting to justify that they don't make any profit and thus aren't eligible to pay taxes), our government wouldn't be able to pay for anything.... even if corruption was at 'zero'.

Wonder why ExxonMobil, RD Tuna and other companies manage to avoid paying any taxes at all to our country?

@Wim2012. I could not agree with you more.

Government workers not pay tax?I guess we'd be the first country in the world to try anything like that!

To the poster above. If you read my posting you would have picked out that i suggested a tax reduction. The reason being that there is more than enough tax revenue coming from the numerous mining an LNG projects around the country. Ordinary citizen do not have to bear the burden of tax that can be supplemented by the mining and oil boom.

It would mean a tangible benefit for the rest of us who are not land owners.

Cheers

Read the posting under the Kumul Board about our natural gas if you think there is more than enough money coming from the mining, etc companies.

We're getting screwed - we get toea while everyone else makes kina off our resources. In the end, that will come back to haunt us because most of the resources we're selling are NON-RENEWABLE and they'll never come back. We're losing literally hundreds of billions of kina that could have been used for development in this country while greatly slowing down the rate at which we now kaikai these NON-RENEWABLE resources.

You need to look at the big picture and the long term.

Government has to tax 20% of the population to feed the 80% of the population.Where do you think the government can get its revenue to build bridges, roads and schools etc.The working population is smal therfore you ahve 35% tax. The tax administeration process including collection, enforcement and management of taxation regime is a different issue.

Then the government should get of its soft brown buttocks and do something about unemployment, create jobs and train our own people to be able to work skilled and semi-skilled jobs on mining construction sites etc. What do they do with the 35% tax they collect?

No, what really pisses me off is that i don't only pay 35% tax, i pay 45%, every toea i spend on food at the shops and service i use is VAT added therefore adding 10% onto what i give, the government really blinded the people when it introduced this stuff, and it lets Exxon Mobile and the like get away without paying taxes until they turn a dividend, not a profit, a DIVIDEND. Meaning they don't pay tax unless their shareholders recieve dividends, here they are making a profit, but because they don't payout their small shareholders with dividends they don't pay tax. Gee, maybe i should leave the public service, obviously the government isn't the least bit interested in helping me serve the people. I guess i'm a wasted talent.

You ahve touched the issues of tax administartion. Widening the tax base and using the tax money appropriately is the big issue with PNG Government. You cannot run from taxes. You must render to ceaser what belongs to Ceaser but if Ceaser knows only to to collect, and fails how to manage, adminster its collection then you expect no changes on taxes.

PNG LNG, Barrick, Ramu Nico, MMJV....all have a 10-years tax free investment. Which means they will be taxed for operating in PNG and making millions after 10 years.

Although salary taxation is the single biggest income for the government, why can't they ammend Taxation Act and reduce personal income tax threshold.

To compensate for that, reduce the 10-year tax have period to 7 years, it still attracts investment, but at the sametime offset the personal income tax cut. I would really like to see reduction in income tax!

My daughter (2yrs), my husband (unemployed) and myself (employed)...we all pay tax, and i sometimes feel i'm doubled, tripple or even multiple taxed.


Imbokeri Ambai
Broken Hill, North Waigani

The fact is that our pollies have been lying that PNG is attractive for foreign investment.

We're only attractive to companies who expect to rip off our resources and make big, BIG bucks out of it.

Get rid of the tax holidays in PNG, and the mining companies will all be down in Australia where everything is straightforward, far better infrastructure, no LO problems, etc.

Let them go there. All they're doing in PNG is creating the ingredients for future poverty.

Our land is our life!

I agree with Mendi Naiko.The government must seriously consider lowering the 35% tax for the struggling hardworking employees.especially those in the private sector.
we all have families,obligations/commitments at home to consider too.with our normal forthnight salary,one could not afford with the available net pay.
Besides people are not really getting the full benefits of our tax especially in the remote areas and small towns.

Theres alot of things just not right.somethings gotta be done!

Your thinking of yourself, not your country.
Your greed is controlling your mind.
Christian pasin would be to make sure your tax money goes to help the needy in our country.
But no, your to greedy for that. You just want your taxes lower.

at Pfffft..who are you refering to?

I reckon pffft was posting against those lucky PNGs who have a regular job yet complain about their taxes being too high, while millions of our wantoks in PNG would give anything to have a job that pays even 1/5th as much!

Well the point is for an average middle class worker in PNG,the income tax of 35% is too high.will all the deductions including taxes how can one manage to support their families for food,school fees,talk about house rentals or owning a house ,just can't imagine.
Once tax is lowered it will benefit (in the form of some extra kina in the paypacket) most of the middle working class and low income earners who most in turn as we know in png ,support extended family members back home in their villages.

Another problem is mismanagement/corruption by successive governments/politicians.Png's got alot of natural resources and money,it's poor management that services are not delivered throughout the country.Once heard from a respected expat academic that the earnings alone from the forestry sector can fund the governments budget for a year.Then what else? the income from other industries or resources in PNG like minerals,oil & gas,fisheries to name a few can be used to other vital services badly needed to be developed and or maintained like infrastructure,education,schools,etc..The government will still have surplus money in its reserve.

over to you!

You've mentioned mostly NON-renewable natural resources, the revenue of which we should not be using to fund any services (instead we should be depositing it into a sovereign wealth fund and using only the interest monies for government services, etc). Forestry is being done in a totally nonsustainable way thanks to big time corruption and the fact that the highly corrupt Rimbunan Hijau has nearly all the valuable timber concessions in the country. Thus, revenue from logging will dry up in another 10-20 years.

So that leaves what monies to fund recurring budget needs, including provision of services.

Please don't think you're suffering that much with a 35% tax rate, many countries impose a much harsher tax on their peoples.

The 35% tax threshold for majority middle-income class is too high, considering rocketing housing rentals, high inflation, food, education costs, water and power bills.

Take for example if your income is K1300/fn. And sitting on a K835.00 net income per fortnight, you will be left with a mere K95.00 before your next fortnight. I agree when someone who said "PNG is a society of adhoc living", without a future.

I understand government need to make money, but please be fair and remove the "tax holiday" given to mining magnates and energy giants operating in PNG, and offset that to lower income tax to 28-30%.

Ambai
Broken Hill

Well said Ambai.
doesn't matter revenue from renewable or nonrenewable resources.the government must manage it well and prioritize funding equally and fairly.
Cost of living is high as we all know.Simple the 35% personal income tax must be lowered to something like 20%.
the government can manage to run the country.If and only if the politicians and public servants cooperate and work honestly to manage and put all money to good use and manage it well.

Yep, yep, keep at it boys. There are 101 reasons to justify greed and you're only on #5.

The fact is that you're an extreme elite in both pay and having a job in your country. You both should be ashamed of yourselves for your disgusting lack of acceptance for that simple fact.

I'm sure the Somares are complaining down in Cairns about their high taxes too. As is Wingti.

You're all a bunch of selfish pigs. Keep demanding more food at your table!

It isn't the fact that i'm paying 35%+10% VAT. It is the fact that i'm paying for the other 80% of the population while the government sits back and forgets that it needs to improve their situation instead of relaxing and maintaining the current status quo.

Oh come on. Go to Australia and see what the upper crust is paying in taxes. A lotta people here on scape who are employed are definitely equivalent to the upper crust.

To help others is the curse that Christianity has placed on those who are more fortunate than the rest.

Of course, maybe another religion would suit better.

I agree with the previous poster. You're all just trying to cover up your relative greed with excuses, but the greed still shines through!

Wow an expert on christianity and taxes at the same time! NOT :)
Your curse is your pretence, that you think you know everything but only show your ignorance.

Matthew 22:15-22 we read: Tell us then, what is your opinion? Is it right to pay taxes to Caesar or not?" But Jesus, knowing their evil intent, said, "You hypocrites, why are you trying to trap me? Show me the coin used for paying the tax." They brought him a denarius, and he asked them, "Whose portrait is this? And whose inscription?"

"Caesar's," they replied. Then he said to them, "Give to Caesar what is Caesar's, and to God what is God's." When they heard this, they were amazed. So they left him and went away.


Death and Taxes

just pay your taxes

You know, God only asks for 10% which i'm happy to give, the government asks for 35% and they are happy to take. I agree with 'give to ceaser what is ceaser's and to God what is His'. Our government is in it for themselves, there is no desire to make the country better only to perpetuate the current political situation of making the rich, richer and the poor, poorer. But what we forget is the middle income earners, who are the backbone of the workforce, earning money and paying taxes that invariably get into the pockets of the rich. It is really a case of the "PNG attitude" get the most for the least amount of work.

I work everyday, 7 days a week, 365 days a year, i get compensated yet the government believes it has "earned" the right to 35% of my hard work. Besides, giving themselves better pay conditions, pensions, a jet, private vehicles and fixing up roads that lead to their homes what have they done that they deserve all this money from me? Have they improved health services anywhere? ANYWHERE? No. They contract a useless Logistics firm, that doesn't own a single vehicle, to ship Oxygen and drugs. Inevitably the Oxygen and Drugs are late and if they are not present then i have to either pay for it myself or tell the patients dying that i can't help them. The government pharmacy lists are so outdated, yet despite the input from the public pharmacists, they don't stock better pain killers, reason they are too expensive, trade names, yes, generic versions, much cheaper. Go ahead and call me 'greedy', 'narrow minded', 'selfish', call me what you like but i'm not gonna take this forever.

And to waigani swamp, we pay our taxes just like everybody else, but it is your kind of attitude that allows politicians to walk all over us, you sound like a rape victim "close your eyes and wish it were over".

Don't be a bible robot. Amount of taxation depends upon % of population who are wage earners vs size of population among other factors. One rate does not serve all!

Why do you feel the need to insult me? You don't even know me.

But by reading your post i can assume, 1. All you do is talk without thinking, 2. You don't realise that we are not talking about one rate, but rather, the middle incomes getting taxed at high income rates. 3. You are forgetting the fact that in order to minimise the burden on families, the government need to create jobs. 4. We shouldn't allow companies to mine the soil dry without paying tax and allow them to leave 1 or 2 years after they start paying. 5. You forget that people have more than themselves to feed, think about all the wantoks that arrive at their, maybe even your, door, they ask for help with school fees, flights home, food etc. do you just close the door?

I was going to justify myself, but I just realised something, you're probably too narrow minded to THINK!

I suspect that "middle class" in PNG right now (please don't blindly adopt Australia's definition of THEIR middle class to our situation) is at the average income for PNG. That statistic can be found in UN documents and is less than K1000 a year, last I saw. Anyone who is employed in PNG is not middle class at all, they're high upper class for our country.

I looked up taxation rates for various countries (of course PNG isn't listed because our Natl Planning office has few statistics to plan around), and we aren't out of place at all, especially since we don't pay land taxes or a lot of other taxes that people in other countries pay.

See: http://en.wikipedia.org/wiki/Tax_rates_around_the_world

Of course we're going to whinge because even though we're PNGeans living in PNG, the rainbow we think we see across the Torres Strait motivate us to copycat the Aussie lifestyle. That means (unlike the Aussies) we end up eating mostly imported food, which creates (esp for rice) a strong downward pressure on our kina) and condemns us to completely unwarranted dependency (what other countries apart from isolated Pacific island countries would allow themselves to become import-dependent on food?). Maybe there should be a high tax instead on people that buy imported foods?

Look at India, and the lower living standards of the middle class, or even look at China and see the same - that PNGeans in the 35% tax bracket are living far too high for being in the kind of country that we're in. Our living style has been artificial for years, because it was adopted straight from the Aussies. However, bit by bit, the party is coming to an end. The first steps occurred with the collapse of the kina in the 1990s and now inflation is going to put us where we should be as high income earning professionals of a terribly poor (average income) nation.

P.S. I have only just joined this thread, please don't criticise me for things I haven't even written!

So now you get the point. Putting labels upon people you don't know isn't much fun is it. Oh, and take time to read before you post, so you don't miss the meat of the argument.

I just paid my land tax today. If u didnt then check ncdc. Get your facts right.

Dont be a pretentious robot. You can apply whatever formula you want to but you are not addressing the corruption and greed that has created the poverty and hardships for all Pngeans. The tax system is not helping Png develop and has failed because of greedy, selfish politicians.

The saying is that the two things you cannot aviod in life are death and taxes. I agree that the middle class is the backbone of PNG economy, we keep the wheels of the economy rolling: we pay taxes, we work hard day in and day out.We will pay taxes to Ceaser until we die but if Ceaser sits idle and does nothing to improve the lives of its citizens by administering a reasonable, fair and equitable taxation regime, broaden its tax base by creating employment, managing inflation,law and order,etc then Ceaser is deliberately driving its citizens including the middle income earners to poverty.Its economic suicide!!!. With just 20% of its citizens paying tax,giant foreign compaies given tax concessions for 5-10 years with out paying tax, a poor tax administartion system riddled with corruption, etc etc leaves little hope for PNGeans. We need a total reform on the taxation system in PNG to give the 20% working population hope and relief in their disposable income.

Over to you all.

Why should the government address this issue? It has already been clearly stated that if you want foreign investment in a country with poor investment records and high risks is to not tax them or keep the taxes below. In a population where very low percentage works, you have to substantially tax that minority of workers.

There's no other alternative if you want to generate the revenue needed to keep a country running. VAT tax, import duties, and taxes on resource royaltiese are not enough.

Any tax and revenue expert knows all this. Those of you who refuse to accept the facts are simply ignorant of realities.

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Work for yourself and manipulate your tax mate

You're recommending that others become corrupt (like yourself?).

How pathetic!

The problem ISNT HIGH TAX its what happens to the tax when its collected thats what the real focus should be WHERE IS THE TAX getting spent?

Sick & tired of paying tax, then buy a pmv, boat or run a tradestore. You keep all the profits and no tax

Sick & tired of paying tax, then buy a pmv, boat or run a tradestore. You keep all the profits and no tax

Remember, we are all paying 35% tax plus 10% GST for every goods and services you buy equals to 45% Total tax to the government. its a rip off. So almost half of our hard erned cash is eaten up by the goverment.

PNG tax laws are very unfair on civilised law abiding citizens. Lower the tax rate for the honest ones and offset the difference by enforing tax upon market sellers, buai sellers, pmv drivers, and those in the agriculture sector that don't pay any taxes. I'm also sick of paying 42% tax to a bunch of hopeless beaurocrats.

Lower the income tax rate to 30% at the highest and increase the tax-free bracket for lower income earners. This has to happen! Does anyone here have a legal background? Is it possible for the citizens of PNG to arrange a legal class action against the government? We, the law abiding citizens of PNG are being discriminated against, by the PNG government. Why do we have a completely different set of rules to those living in the villages and settlements?? Why do we have to pay taxes, duty, water, power? Why do we have to acquire permits and follow procedures to acquire land and build houses? Why do we have to follow all these rules when the people in the settlements are not? This is discrimination!!

I have to pay hundreds of thousands in taxes, water, power, building permits, etc, etc, while those in the settlements are getting it all for free!! All because I chose to be a law abiding citizen of PNG.

Increase the tax on lower income earners so that the wealthier can pay less? A VERY unchristian way of looking at the world!

Piss off! This is not time for church!

You must be bludging off your work or daddy's internet connection and dont pay any taxes. We in the real world who work hard to get where we are don't want to spend the rest of our lives carrying lazy bums like you who sit under the house waiting for Jesus to bring your pay packet.

You're a beautiful illustration of how PNG's more privileged are becoming greedier and greedier.

Have some compassion for the poor. Jesus did.

You may read the Bible and you may go to church but you certainly don't have the giving spirit of a Christian do you?

Sorry if I made you cry Jesus, but your Father has given me the wisdom and intelligence to know when I'm being robbed of my efforts!

That aside, I work hard for my family. Proverbs tells me that a good man leaves an inheritance for his childrens children. This is all my life is about! I work hard for my family. If you want to preach about Jesus then start in your own home, because I'm willing to bet that my house is in better condition than yours - physicall and spiritually.

If there's one thing that bothers me more than taxes... it's hypocrites that want to use the name of Jesus win debates and get around. I know your kind well. Tonight you'll be the loudest mouth at the dinner table, talking about how you are sick of paying taxes.

Most poor people esp in PNG work a lot harder than you do at your desk job & earn ad lot less money. Good grief, be compassionate!

I refuse to be compassionate towards the lazy and the government. I will see my accountant about the possibility of having my salary paid directly into a trust >> only 30% tax rate.

No sleepy, you will not get the additional 12%.

I realise you probably never get out of town and into the countryside where 80%+ of our people live but most poor people are NOT lazy. They work friken hard growing the food we buy etc etc. They often walk hours if not days to the nearest road. They get none of the services that townspeople enjoy. This is AT LEAST 80% OF OUR POPULATION. If you were out in the hot sun like them you'd collapse of heat stroke. get off this stupid 'poor people are lazy' nonsense cuz it doesn't fit the facts. You want them to be taxed? Get off it. You sound like a whitie who thinks that village life is like leisurely paradise. Yeah, the work isn't structured according to a schedule but there's a lot of work to be done with a serious risk of death or injury.

And you call them lazy?

So go help them if you're so worried.
You can put your hand up to pay more tax.
We can have a special tax rate for people like you, say 90%.

Boston, their eyes are covered by religion.
There is a reason why the gazelle gets eaten
while the lion doesnt. Yet both are created
perfectly by their Maker.

Didn't the ever greedy Patrick Pruaitch say that once???????

I, I can be compassionate within reason, but not to the point of slavery.
The above four or five postings are all from the same person using different names.
He went from preacher to antagonist in a matter of minutes = hypocrite. Told you so!
The name of Jesus didnt help his efforts so he is now using Patrick Pruaitch.
I'm guessing he has never worked for an income in his life.
Has never paid taxes, but is good at using Jesus to gain compassion from family and friends to get money.
He is one of the lazy bums I'm complaining about, that's why he is so upset.

Hahahahaha! Classic.

???? how do you know all this ????????

Fellas got eyes in BACK OF HIS HEAD

Maybe he's paranoid someones following him!!!!

I've never seen the pen name 'Boston' around here much before may we assume that you also do what you're accusing others of doing. Maybe thats why you feel confident with your speculation if you reckon others do what you do.The reason why real names disapeared so many years ago (go thru the archives of scape boards) is because those who dared give their real names or even used consistent pen names end up being targeted by trolls and rubbished endlessly. The wise amongst us learnt never to use our real names and also to rotate our pen names aren't you doing the same?
Anyway its better if we all at least keep the same pen name within a single thread or discussion so if any of you keep changing your pen names with each posting (there seems to be many since I can't believe there are hundreds of different posters out there) think about keeping your pen name consistent at least as long as you're in a specific conversation.
Also it really doesnt matter whether someone is trying to score points by smart remarks but it does matter if they're trying to score points with different arguments. The bottom line is whatever the readers conclude. Whether you or your opponents think you're right or wrong about an issue is irrelevant. The final judgement is always a silent one made by the readers. If you make good points, you'll win in the minds of those readers. If you don't you wont' end of story.

I use the same pen name. Couldnt care less if they target me for it - it's water off a ducks back! In any case, the topic here is taxation and it is very high. We are paying higher taxes than Australia does. So my opinion remains the same:

- Increase the tax-free threshold for low income earners. The threshold for Australia in the 12/13 fiscal year is $19,000, around K41,000. What this means is that you are not required to pay tax if you are earning less than K41,000. At present PNG's tax-free threshold is only K7,000.

- Max out tax at 30%. This should be the most income tax anyone is required to pay. If PNG companies and trusts are only paying 30% tax why aren't we?

- Impose a super tax on mining companies to offset. They can afford to pay a little more.

Obama: Jesus would back my tax-the-rich policy

By Charles Riley @CNNMoney February 2, 2012: 4:12 PM ET

President Obama tied his faith to policy issues on Thursday.

NEW YORK (CNNMoney) -- What Would Jesus ... Deduct?

President Obama offered a new line of reasoning for hiking taxes on the rich on Thursday, saying at the National Prayer Breakfast that his policy proposals are shaped by his religious beliefs.

Obama said that as a person who has been "extraordinarily blessed," he is willing to give up some of the tax breaks he enjoys because doing so makes economic, and religious sense.

"For me as a Christian, it also coincides with Jesus's teaching that for unto whom much is given, much shall be required," Obama said, quoting the Gospel of Luke.

"I know that far too many neighbors in our country have been hurt and treated unfairly over the last few years," Obama said. "And I believe in God's command to love thy neighbor as thyself. I know a version of that golden rule is found in every major religion and every set of beliefs."

An administration official speaking on background told CNN that Obama viewed the speech as chance to explain his personal faith practices and to show "his desire to step in the gap for those who are vulnerable."

O. Wesley Allen, a Bible scholar at Lexington Theological Seminary, said that one of the most commonly cited Bible passages about taxes is frequently misinterpreted.

In the Gospel of Matthew, Jesus is asked whether it is lawful for Jews to pay taxes to Caesar, a Roman dictator.

Jesus tells his questioners to give back to Caesar what is Caesar's, and to God what is God's.

"That passage is often quoted as saying Jesus said to pay taxes. That's not what it is," Allen said. "It's important to remember that the people asking this question are trying to trick him. He gets out of the trap more than he answers the question."

Perhaps a better parallel is gleaning -- an Old Testament practice in which farmers are encouraged to leave the crops on the edges of their fields for orphans and widows.

"As a commandment, that functions as a tax on the rich for the sake of the poor," Allen said.

Allen said there are many passages throughout the Bible that mandate the poor and widowed should be cared for.

Did Ceasar really use the tax income to help the widows and poor? He was neither Jew nor Christian, so there's some questions as to whether or not he followed Jewish law?? I think not. Personally, I cannot see our government doing the same either.

But all should be done within reason. There are still hard working middle class families struggling to pay school fees, medical, loans, etc, as well. They house, feed and clothe their less fortunate relatives and are doing the best they can for them. It comes down to balance. Not necessarily because Jesus, Budah or Krishna said so, but because it's basic common sense.

Furthermore, when you talk about "taxing the rich" you're playing a different ball game. The rich are a lot smarter than you and I. They have teams of accountants and lawyers working to protect their wealth and minimize their tax burden. They hide their wealth in trusts and live through their companies - when you make your company pay for your living expenses you pay with pre-tax dollars, not like other salary and wage earners who buy everything with after-tax dollars. The rich don't get taxed for their personal expenses paid through their companies because expenses are not taxable. Then, you have the filthy rich who escape taxes through "tax triangles" - they don't spend more than six months in any one country so are not residents for tax purposes. It's a completely different ball game and there are many tax loopeholes available to the rich.

The government will tell you to your face that they are taxing the rich (who are also their friends and political supporters) but behind the scenes they are making and amending laws to create new loopeholes.

You make some very good points and observations. I guess my concern is that we let the rich get away with not paying their fair share and in order to relieve the tax burden on the middle class we increase the lower class taxation rate. This is not Australia and our poor are in a very different situation than what you find in other countries. First of all, it would be harder to find them to tax them than it is PNG's rich. My conclusion: focus on getting more money from the rich somehow?

I don't think you're reading my posts fully. I'm not saying to increase tax on the poor. I'm suggesting to increase the tax-free threshold on the poor, which is in their favour; and cap the income tax rate at 30% in the highest bracket to lessen the burden on middle class employees. I'm further suggesting to offset by imposing a higher tax on the bigger mining and other international companies on our shores. These entities can afford to pay more tax.

I heard that hardly any logging companies have ever paid taxes in PNG. They use a trick called transfer pricing to help their accounting books so that they can say each year that they made a loss. That way they pay no taxes. How do you stop them from doing that?????

Dont worry Boston, yu cant explain simple economics to a particular person (antagonist)on this forum because it is way above their way of thinking.

Bring the income tax down to 30% why should we pay for corrupt politicians.

Mate, you're the one who seems a little bit ignorant. Try not to talk down others about their knowledge of economics until you first look in the mirror.

The majority of tax money is not stolen for a start. You comment that it's all being stolen anyway by corrupt people is simplistic and not factually accurate.

Secondly, how do you propose the government makes up the shortfall by reducing the tax rate on some? Boston proposed some ways of doing things which results in higher taxation on companies and the rich. But Boston himself notes that the rich are famous for sneaking out of paying their taxes and Destiny noted that companies are just as bad (actually this is true especially in PNG where a surprising number of foreign owned businesses pay no taxes at all).

So are we back to square 1?

Well Em Tassol maybe you can tell us all where the taxes are going because my childeren are not getting a first class education from the run down schools, my children are not getting first class medical attention unless I pay exorbatent fees. I cant get on a PMV that is clean and not run down (Public Transport), the police have no infrastructure let alone uniforms to police the country. Tell me why I have to sit through 4 hours of blackouts, waterpass and all the rest of it?????????? Where is my tax dollar going???????

LOWER THE INCOME TAX RATE!!!

I dont see any capacity building, no infrastructure development NOTHING for my taxes. All I see is greedy politicians sending there childeren to overseas schools, overseas medical centres, buying property overseas, you tell me where they get this kind of money from???????

You tell me where my tax is being spent!!!!!!!!!

Answers to your why questions:

1. Not enough revenue - more taxes have to be collected from somewhere or there will never be the kind of full infrastructure our country needs, even with no corruption. You tell us where.

2. Inefficiency - Go to any government office and see how little work done per hour. Look at the schools and see when classes start and when they end.

3. There are many millions sitting in trust fund accounts because OUR OWN PEOPLE can't even prepare a requesition form (functionally illiterate).

4. Bad luck to be living in a country located in a part of the work where there are heaps of white ants, tons of landslips and earthquakes, lots of floods, etc, all of which makes all infrastructure much much more costly than in our neighbour Australia.

5. A mostly rural population. Very very costly to provide services for yet they're the ones who need those services the most.





I'm sure you travel on roads - built with taxes.
I'm sure your kids have a roof over their heads in school-built with taxes.
I'm sure your kids have teachers of some kind-paid for by taxes.
I'm sure you see policemen and police cars in your area-paid for by taxes.

Of course huge amounts of money is being wasted but isn't that true from top to bottom in almost every workplace in PNG? Think about it!

Just adding to your comments please dont be offended.

1. Not enough revenue - Because the Gov has no vision and direction it hasnt created the climate for people to develop first their talents and resources

2. Inefficiency - Damn right on that one

3. There are many millions sitting in trust fund accounts because OUR OWN PEOPLE can't even prepare a requesition form (functionally illiterate).

Again Damn Right on that one and its being done on purpose keep the people as the sheeple.

4. Bad luck to be living in a country located in a part of the work where there are heaps of white ants, tons of landslips and earthquakes, lots of floods, etc, all of which makes all infrastructure much much more costly than in our neighbour Australia.

Disagree, just look at Singapore, Malaysia, Taiwan they are in the same kind of geographic, geological,tropical region but the standard of living is better and their governments know how to develop a nation.

5. A mostly rural population. Very very costly to provide services for yet they're the ones who need those services the most.

Their is alot we can learn from our asian neighbours in terms of nation building without loosing our identity and doing it the melanesian way. Create industries and industry centres for a start and rural development centres


I'm sure you travel on roads - built with taxes.................................not in PNG its all donor aid
I'm sure your kids have a roof over their heads in school-built with taxes......not in PNG private and donor cover that
I'm sure your kids have teachers of some kind-paid for by taxes.............nope mostly foreign aid trains our teachers
I'm sure you see policemen and police cars in your area-paid for by taxes.......nope paid for by foreign aid.

Of course huge amounts of money is being wasted but isn't that true from top to bottom in almost every workplace in PNG? Think about it!

Sappota, thank you for the kind words. Doing my best to make my posts as easy as possible to read, but sometimes some reading between the lines may be required. Then again, certain individuals can't help but ruin a good topic.

Destiny, these are the tax loopeholes put in place by the government and their wealthy friends to avoid paying taxes like you and I. Businessmen don't want to declare huge company profits or individual salaries so they use their companies to pay for living costs and luxuries with before-tax kina to diminish profits and, hence, tax. You and I, on the other hand, get taxed first before we receive our pay cheque; then we spend what is left on living expenses. There's really nothing we can do about it because the politicians and their wealthy friends are utilising the loopeholes to acquire personal wealth and will protect them at all costs. I'm sure a lot of our politicians have been using trusts to conceal their assets (locally and overseas). The benefit of a trust is that the assets are not kept under the name of the real owner to protect them for lawsuits, etc, and only taxed 30%.

One thing in our favour is that the larger global companies listed on overseas exchanges must report a profit to please their shareholders. Of course they still manipulate the books, but it is a lot harder when you have thousands of shareholders wanting to see positive returns. Failure to declare profits usually results in shareholders selling out and sinking the share price. These are the guys we can and should tax more... Why not when the profits are going overseas?

"Transfer pricing" is the trick the multinationals use to keep from paying taxes in countries they don't want to. It does NOT affect the bottom line that is of concern to the shareholders.

Rimbunan Hijau is the queen of transfer pricing in PNG but all the multinationals do it. Please tell me how to end the practice, it takes more policing than PNG has taxation resources.

Economist, you can't stop or police it. Like i said, it's well protected.

This kind of transaction manipulation needs to be stopped but the question is how??? How can we stop this kind of thing from being done???

The mining and other large global companies in PNG have many unfair tax concessions, including the vehicle of transfer pricing which Economist has pointed out.
The only way is for government to review the concessions and treaties. How? I don't know. Call Peter O'Neill, he is an accountant by profession.

O'Neill is an accountant by profession.... and a damn crooked one! :-)

Actually, it is those corrupt people who see their evil ways and reform themselves who can become the best corruption fighters since they know all the tricks. Let's hope for O'Neill.

Increase taxes on beer, cigarettes and gambling as well, while we're at it. This will also help to curb over-indulgence and may give a few addicts the urge to quit completely. I'd rather tax the beer drinker and smoker than the hard working mother or father trying to give their children a good education.

@Boston,
The idea that heavy tax on addictive goods such as beer and smoke as a means to control behavior is not true. We assume people will be “forced” to quit as a result of higher prices.People respond differently to tax increases: some will quit, others will cut back, and still others will not change their smoking behavior at all.Such shift in price for smoke and beer hits the poor harder even hardship among some poor individuals who find it difficult to quit or even shifting to other susbstance like marijuna for instance. I beleive the entire taxation regime needs to be relooked including administration, execution and collection means and methods.The principles for assessing the equity of taxes should not be forgotten. All of the abve are a product, if not, out comes of a taxation regime that is not effectively functional at the expanse of the poor and the middle income earners.

Article taken from the Cancer Focus in Norther Ireland:

LARGE RISE IN TOBACCO TAX WILL HELP MORE SMOKERS QUIT

Posted on: 21/03/12

The 5% real term rise in tobacco has been warmly welcomed the Ulster Cancer Foundation (UCF) which had lobbied for this level of increase to help smokers quit and dissuade children from taking up the habit.

UCF is delighted that the Chancellor acknowledges that raising tobacco duty is a key component of a comprehensive strategy to reduce smoking.

Gerry McElwee, Head of Cancer Prevention UCF, said: “This is excellent news. We are delighted that the Chancellor has listened to the voices of the health community and taken decisive action to tackle the greatest single cause of ill health and premature death.

“Increase in tobacco taxation is the most effective way of encouraging smokers to quit. We welcome this increase as it also ensures most brands of cigarettes are out of the price range of many young people. This makes it much less likely that the next generation will be seduced into taking up smoking.”