Thursday 25 January 2024
Prime Minister and Treasurer, James Marape has reassured Bank South Pacific (BSP) that the government would review taxes imposed on the bank, to promote economic growth in the country .
In a meeting held on Tuesday, 23 January 2024, with BSP Chief Executive Officer Mark Robinson and Chief Financial Officer Ronesh Dayal, Mr Marape acknowledged BSP’s concerns about the impact of the K190 million Additional Company Tax (ACT) on its 2022 profits, and the increase in PNG’s commercial bank tax rate from 30 per cent to 45 per cent in 2023.
“I am looking at the BSP tax issue,” Prime Minister Marape assured Mr. Robinson and Mr. Dayal. “I am having a holistic review of the entire tax structure and tax policies.
‘Over the next three to four months, I will dive deep into how taxes have been imposed so that we come up with a fairer taxation regime.
“In my view, taxes should be fair so they don’t kill reinvestment and growth. We will find a fine balance on the BSP tax issue.”
The Prime Minister’s commitment to conducting a comprehensive review of the tax structure reflects the government’s intention to create a fair and balanced taxation regime that promotes economic growth and sustainability.