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PNG Government Cuts GST and Raises Income Tax Threshold

 PNG Prime Minister James Marape says the removal of GST on 13 essential household items demonstrates his Government’s strong commitment to easing the cost of living for families across Papua New Guinea.

PNG Prime Minister James Marape

The GST zero-rating came into effect on June 1 and will continue until June 30, 2026. Marape added that the tax relief, alongside an increase in the non-taxable income threshold to K20,000, will save families and workers hundreds of Kina each year.

One of the nation’s largest retailers, City Pharmacy Limited (CPL) Group, responded promptly by updating prices in all its outlets to align with the Internal Revenue Commission’s notice.

The 13 items now exempt from GST include tinned meat, coffee, diapers, rice, tea, soap, cooking oil, wheat flour, and chicken, among others.

Papindo Trading Company confirmed its full compliance and assured customers of nationwide price reductions at all its branches.

Trukai Industries head Andrew Grace also praised the initiative, saying it provides real relief during tough economic times and is a step in the right direction for household affordability.

IRC Commissioner-General Sam Koim stressed that businesses failing to pass on the GST relief to consumers would be penalized under existing tax laws.


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