Port Moresby City Wardens Begin Their First Day of Duty

The Papua New Guinea Government has introduced a K28 billion national budget for 2025, unveiling major reforms to income tax laws. Treasurer Ian Ling-Stuckey presented the proposals in Parliament today, outlining plans to adjust tax policies aimed at alleviating burdens on individuals and businesses while enhancing economic stability.

Among the key measures is the removal of the 22% tax bracket for salary and wage earners, which will simplify the tax structure and potentially provide relief to working citizens. Additionally, the government is proposing exemptions for retirees withdrawing superannuation funds, provided they have been employed for over 15 years.

Tax changes are also being targeted at the banking sector. Treasurer Ling-Stuckey announced a reduction in tax rates for commercial banks with profits below K300 million, which will drop from 45% to 40%. Larger banks, with profits exceeding K300 million, will see gradual reductions in their tax rates, starting with a decrease from 45% to 44% next year, with further annual reductions until the rate reaches 35%.

These revisions seek to address previous tax laws that raised bank tax rates from 30% to 45% in 2023. Mr. Ling-Stuckey highlighted that the amendments are intended to correct past decisions while ensuring fairness across the banking sector.

The Treasurer also emphasized that the government will maintain the K20,000 tax-free threshold for personal income, safeguarding a critical benefit for low-income earners. This move underscores the government’s commitment to providing financial relief for households.

The proposed changes come as part of the broader 2025 budget, which prioritizes security and fiscal responsibility. Parliament will continue deliberations on the budget in the coming days, with the tax reforms expected to play a pivotal role in shaping the nation’s economic future.

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Port Moresby City Wardens Begin Their First Day of Duty