PNG Government to address Inflation issue in Supplementary Budget

 Papua New Guinea PRIME Minister James Marape has announced that his government will address inflation in the Supplementary budget and implement the K610 million assistance they put out before going into election.

Prime Minister Marape said the government had responded to the high inflation rate by increasing the basic salary range from K12,000 to K17,500 including a K200 project fee to schools nationwide.

“We also removed 10 per cent of the fuel voucher and if it is not enough it will not stop the imported inflation that we are experiencing today but at least our government did make the first step today,” PM Marape said.

“Before we went out into elections, we put out K610 million worth of assistance, including those who earn salary under K17,000 – the threshold before was I think K12,000 if I am not wrong and that is an increase. That’s low salary for shop assistance, security guards, the casuals, those who are at the lower end of the salary structure,” PM Marape said.

“The tax holiday or wavering of the tax for the low income earners….are also in the K610 million subsidies raised basic food like rice, oil, fish and possibly women items or essential needs; we removed 10 per cent. We also removed 10 per cent of the fuel voucher and if it is not enough it will not stop the imported inflation that we are experiencing today but at least our government did make the first step today.

“Now let me inform the country, unfortunately I could not benefit from this during the campaign because the agencies that were supposed to implement this were slow in coming but we are asking them to make it work.

“As we go through the supplementary and the November Budget we also looking at some measures to further give support to the ordinary Papua New Guineans. Now at the moment, we got K610 million worth of assistance and support.

“So what we would have collected from the import duties at the fuel voucher the additional taxes and 10 per cent from essential items, K610 million passing back to the people and at least something and nothing at all.

“We are looking at what needs to be done and if the Supplementary budget that is coming up cannot address this then the November Budget will address greater support to our people in respect to addressing the pressing issues of imported inflation from the war that is taking place in Ukraine.

“…as I said, the middle income earners and the low income earners, I belong to them so I know exactly what it means to be hard, living through tough times, we already lifted the threshold to K17,500 and we looking more than that.

“Treasury is going through one model with the Prime Minister’s Department to see what more additional help we can give and removing of project fees from school…“We will see what we can do more.”

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