PNG Treasurer expresses disappointment at Digicel tactics
“In discussions on tax changes aimed at on-going budget repair to improve funding for education and health and infrastructure, there are certain reasonable expectations that the confidentiality of those discussions will be respected. I am disappointed that the discussions on Tuesday night with Digicel has been leaked. There is no justification for such actions. It is disrespectful” stated the Treasurer.
“Further, it is disappointing that a scare campaign is now being built up around possible tax changes. Even in the discussions last Tuesday, the messaging was that there would be a campaign targeting rural communities, especially in an election context. There is a line where foreign companies need to be careful about putting comments in a domestic political context. My understanding is that this aggressive response stood in contrast to the more refrained response, while still expressing concerns about the fairness of the tax, from our locally owned firm BSP.
“We welcome the positive contribution that Digicel has made to improving access to telecommunications in PNG. This is acknowledged and appreciated.
“We also, as a government in the worst economic crisis in a century, need to deal with the challenges of budget repair. This meant we had to explore tax increases. We decided to avoid general tax increases. Instead, the decision was made to focus on those sectors widely perceived as having super-profits. I announced this decision two years ago in the 2020 budget. I am informed that Digicel was invited to consultations on the announced telecommunications tax two years ago but they did not respond. There was strong passive resistance to such a tax rather than coming forward with constructive suggestions. I announced the telecommunications tax again in the 2021 budget. The industry should not be surprised that there will be a tax introduced in the 2022 budget.
“Let me assure our rural people that all firms which operate within PNG should be mindful that they operate in the context of a legal and social license. They should also be mindful that the state has a range of price control, licensing and other regulatory powers to protect vulnerable rural communities. Let me assure our rural people that I have today already had meetings with our regulators on how we can protect your interests if attempts are made to action the threats made today.
“I am someone who is always willing to listen. If there are features that can be improved, then we can talk during 2022 and look at further refinements in the 2023 Budget context. But be assured that I will also work hard to protect the interests of our nation and our people, especially our rural people that have been threatened by speculations today. Taxes are not popular. New taxes always face loud complaints. As Treasurer, I need to balance such noise with getting the funds to support our health system and education system and infrastructure system, all of which will be made very clear in the budget being presented on Thursday” stated the Treasurer.
Statement
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