PM Marape Considers Lowering Taxes to Boost Investment in BSP
Papua New Guinea Prime Minister James Marape expressed that his government is contemplating a potential reassessment of the supplementary corporate tax levied on the Bank of South Pacific Financial Group Limited (BSP) with the aim of fostering investment and expansion. He expressed his intent to scrutinize the entire tax framework and policies comprehensively over the next three to four months.
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| Marape intends to review company tax levied on BSP |
"I am currently examining the issue of the BSP tax," stated Marape. "We are undertaking a holistic review of the entire tax structure and policies. In the coming months, I will delve deeply into the way taxes have been applied to ensure the establishment of a more equitable taxation system. In my perspective, taxes should be reasonable to avoid hindering reinvestment and growth. We are striving to strike a delicate balance on the BSP tax matter."
The Prime Minister highlighted the possibility of imposing a "reasonable" tax on BSP in the first quarter of 2024, with the aim of encouraging investment and growth. This decision is expected to follow an inquiry into the existing taxes imposed on the bank. Marape addressed concerns raised by BSP regarding the impact of the K190 million additional company tax on its 2022 profits and the escalation of Papua New Guinea's commercial bank tax rate from 30 percent to 45 percent in 2023.
Marape affirmed the government's dedication to conducting a thorough review of the tax structure, emphasizing its commitment to establishing a fair and balanced taxation regime that supports economic growth and sustainability.
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