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A member of parliament has urged government to ensure the revised 2022 money plan is implemented soundly.

Northern Governor, Gary Juffa said while many local citizens were being over taxed and paying their dues, others weren’t.

“We have a black economy! It is an area where a lot of illegal activities happen or taxes are evaded or transferred,” Governor Juffa said.

The former PNG Customs Chief turned politician said, “The black economy has billions of Kina in there that never make it into our (PNG) coffers”.

He alleged that there were illegal activities taking place outside PNG waters.

“Did you know Mr. Treasurer, that significant or large volumes of fuel used by some of the players in this black economy, especially those in the forestry sector and those in the fisheries sector come across from the borders of Indonesia?”

“They are never taxed, they just hover outside our EEZ (Exclusive Economic Zones), ships go out (to sea) and get the fuel and come here and spread it out to their operations, and they pay absolutely no excise duty on this,” Garry Juffa said.

“We need to take these guys (companies not paying tax) on, we need to hold them accountable, we are not doing that!” Governor Juffa added.

“Most of it is transmitted offshore to build empires in other countries,” he concluded.

He said it was time institutions of government step up, and ensure that they serve the interest of the nation with integrity.

“We need to carry out a review of all the creatures (government entities) that we have created”.

According to an Attorney General’s report of the year 2018, 1419 government entities are operating in the country.

“Many of these organizations are performing in the best interest of the country, they are assets but there are a great number of them that are liabilities,” Governor Juffa said.

“They have executives, some have boards, they have a budget line, we don’t know what they do.

The state entities soak up significant amounts of money that ought to go to schools, aid posts, roads, bridges etc,” said Juffa.

The seven new electorates have been included in the Supplementary budget of 2022 which captures revenue from reviewed tax measures, plus surge in global oil prices, versus a K611 million Household Assistance Package.

“We have major increase in net revenues as well as the need for specific appropriations such as, K160 million school project fee subsidies announced as part of our household Assistance package,” Treasurer Ian Ling-Stuckey said in parliament.

The Supplementary budget is framed following the country’s election aimed at continuing the promise by government to steer the country to the Prime Minister’s dream of “becoming the richest black Christian nation.

“There is also the need to provide additional funding for the seven (7) new districts that have been created and K3million each has been provided,” he said.

This is Ling-Stuckey’s fourth Supplementary Budget since being elevated to the Ministry and one that is still framed amidst pressure from external economic conditions.

“(Budget) is framed in what the IMF (International Monetary Fund) calls, the ‘gloomy and uncertain‘ outlook for the global economy, however, there are promising economic times ahead for PNG.

“PNG is experiencing by far its highest growth rate, in the Kina size of our economy in its history,” the treasurer added.

While the announcement may seem as welcome news for many, the real pressure of the rising price of goods and services is still being felt by the average Papua New Guineans.

“As highlighted in the comments on MYEFO (Mid Year Economic Fiscal Outlook) report, we must make sure, that positive macro economic news, does not blind us to the pain being faced by many families,” he said.

The priority areas of government expended through the K611million Household Assistance include:

  1. K250 million for continued removal on tax on all fuel products.
  2. K126 million for school project fees.
  3. K135 million from Tax collection
  4. K100 million for subsidizing household commodities.

Tax measures are again a key feature in the 2022 revised money plan, this time with cuts in Personal Income Tax for all wage earners.

“I was pleased that from 1 June 2022, all wage earners paying tax are receiving up to an extra K42.30, in their fortnightly pay packets,” Ling-Stuckey said.

He also noted the Additional Profits Tax which was supposed to be implemented on the banking sector, has not been implemented.

“For some reason, the tax cuts have not been processed, through the ALESO pay (roll) system”, the Treasurer said.

Another initiative of the Pangu led government is to subsidize household items.

“In April, we announced, that arrangements will be made by IRC with local firms, whereby firms would lower cost on key items such as flour, tinned fish, rice and OX and palm and in return they would be granted an equivalent reduction in taxes,” Ling-Stuckey said.

The assistance, however, took time to implement earlier this year because of the need for several legislative changes.

“We apologize for the delay…we will be watching closely the performance of IRC in this area, to ensure the changes are put in place this year,” he said.

PNC Party Leader and former Prime Minister, Peter O’Neill walked off the floor of Parliament moments before the election of the Prime Minister.

Earlier in the day, a three man Supreme Court bench refused an application by Mr. O’Neill to stay the Parliament Sitting.

Just before 4pm, Tari Pori MP, James Marape was elected Prime Minister for the 11th Government of Papua New Guinea unopposed with 97 votes to Nil.

Marape’s election as Prime Minister comes after Manus Open member-elect, Job Pomat was voted in as Speaker unopposed.

Marape was escorted down to the Government House at Konedobu and sworn in as Prime Minister.

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