Former PNG PM O'Neill Calls on Government to Review Tax Laws

 Former PNG prime minister Peter O’Neill has called on the National Government to review the tax laws to give relief to workers to live through the recession facing the country.

“Government must reduce the salary and wage tax that will give people the ability to make and spend money,” he said.

“Companies and people are suffering.

“Reduce salary and wages tax the income tax on workers so people can have more money in their pockets.

“Give breathing space to families to spend and government can still collect revenue from GST (goods and services tax) from people spending money.”

He said the government should stop the bleeding of the economy to bring back people’s confidence.

“Stop the bleeding by making bold decisions so people will have confidence in you,” Mr O’Neill said.

“Not making decisions on the run but firm decisions.

The member for Ialibu-Pangia also called on the National Government to introduce a supplementary budget to tighten its belt on spending.

“When you have a revenue shortfall, you cut your cost and live within your means,” he said.

Mr O’Neill said the country’s economy is in recession which is a huge concern and the economy will not pick up for some time yet and even get worse.

“Worse is yet to come given the current indicators,” he said.

“Unemployment is rising, there is no more foreign direct investment, interest rate is rising, GDP has decline over 10 per cent over the past two years.”

“The indicators show that the economy is in very serious trouble. The government has no new plans to boost or promote growth in the economy.”

He said COVID-19 is understandable but some decisions contribute to the recession we are facing today.

Mr O’Neill said the review of the Bank of PNG is unnecessary.

“This is the same government that borrows and virtually print money from the same BPNG,” he said.

“The government should stop borrowing for consumption but for infrastructure development to create jobs and stimulating economic growth.

“Where have all the borrowing gone to? Where have all the COVID-19 money gone to?

“They need to report to the shareholders, the voters, why there is no cash flow and where they have spent the K6 billion borrowed funds in the last two year.

“This government has got no plans to stop the bleeding.”

Statement 

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