A K350 million economic intervention package will be given by the Government to relieve families off the pressures of the escalating cost of living.
Prime Minister James Marape said the Government was preparing this package to help deal with the cost of living pressures that are flowing from the Ukraine-Russian war.
The K350 million covers the following:
- K100 million- lifting the goods and services tax (GST) entirely on a targeted set of key household items such as flour, rice, noodles, tinned fish, corned beef, women’s sanitary products, diapers, biscuits and cooking oil;
- K50 million- lifting entirely from petrol, diesel, zoom and kerosene for retail consumers;
- K150 million- lifting fuel excise taxes entirely from petrol, diesel, zoom and kerosene for retail consumers;
- K20 million- bringing forward the reduction in the fuel import tariff excise; and
- K30 million- subsidy to PNG Power Ltd to help deal with increased fuel costs.
Marape said consultations have been held with the Independent Consumer and Competition Commission (ICCC), PNG Customs, Internal Revenue Commission and local business to immediately effect the relief recently announced in Parliament.
“We are working on the principles that the response needs to be targeted to the most vulnerable; that it needs to be budget-neutral with K350 million in estimated additional revenues matched by K350 million in reliefs; and that the measures should be designed to be temporary.
“Overall, we expect that some K250 million of the package will be focused on targeted reductions in fuel taxes benefiting the retail sector,” he said.
“The other K100 million is to benefit families through lower prices in targeted basic household commodities as listed above. We will work with the ICCC to ensure these cost reductions are passed through to benefit families.”
PM Marape said any legislative requirements would be taken to Parliament this week for consideration.
