PNG unions demand delay to income tax law, warn workers’ pay at risk
Trade unions across Papua New Guinea have called on the Government to delay the rollout of a new income tax law, warning that workers’ take-home pay could be reduced if the changes are rushed into effect next year.
Union leaders raised the alarm during a press conference in Port Moresby, saying employees were not properly consulted before the law was passed and that critical regulations needed to protect workers are still not in place. They argue that without clear safeguards, both public and private sector workers could end up worse off.
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| PNG unions demand delay to income tax law, warn workers’ pay at risk |
The PNG Trade Union Congress said the law could allow employers to restructure salary packages in ways that shift additional tax burdens onto workers. Unions are particularly concerned about the treatment of non-cash benefits such as housing, transport, utilities and other allowances.
Assistant Secretary General of the PNG Trade Union Congress, Anton Sekum, said workers are already struggling with the rising cost of living and should not be forced to absorb new financial pressures because of poorly implemented tax reforms.
Public Employees Association General Secretary Ugwalubu Mowana also expressed concern, noting that public servants were largely left out of consultations. He warned that government departments may not be ready to apply the law fairly without clear operational guidelines.
Union leaders are urging the Government and the Internal Revenue Commission to push back the implementation date to allow proper consultation and clear rules that guarantee workers will not lose income.
“We want a guarantee that no worker’s total pay or take-home pay will be reduced because of this new income tax law,” Sekum said.
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