THE national government has increased non tax revenue without proper consultations that is affecting agricultural businesses in the country.
The concern was raised by Farmers & Settlers Association Inc.
Association President, Wilson Thompson said the impact of the increase is hitting hard in the agriculture and processing industries in the country through Department of Labor and Industrial Relations, Climate Change, Environment and Conservation, water resource including air, sea and land transport.
“Increase of factory and warehouse fees and fire safety equipment including vehicle registrations are also increasing the production cost of business.
“Non-tax revenues such as driver’s license fees, water permits, surcharge for fossil and fertilizers are affecting the business. Some fess are increasing from 100 to 1000 percent. This include driver’s license which was K50 for five years to K70 per year. That is an increase of 400 percent which is around K350.
“Moreover, there are fees that have not been charged since 1980 up to 2020 that is about 40 years ago and is making a sudden increase that is affecting the business. Any increase should be done progressively in the next five to 10 years and not a sudden stiff increase for instance 500 to 1000 percent to be effective in the year, 2021,” Mr Thompson said.
He said there is also no proper explanation to the increase in fuel price or the surcharge.
“Experts find that PNG contributes 0.0000001 percent of carbon emission and we don’t use coal and heavy fossil fuels despite having all the rainforest unlike other industrialized countries in the world compared to other industrialized countries. The other industrialized nations that emit more carbon that contributes to climate change and global worming have not even applied such fees and taxes to its people.
“In the case of the industries that uses fuel, fertilizers factory and warehouse and the transport. It will be highly affected with all its cost of running the business,” Mr Thompson reiterated.
He said Farmers and Settlers Associations are proposing that the National Government must hold on to any tax increase until further consultation and justifications are done. They want explanations from the Department of Finance for the increase fertilizers, fossil fuels.
They also want the responsible governments to clarify the reasons behind the increase and whether the increased fees are going to increase or decrease productions.