Monday 2nd June, 2025
Papua New Guinean households struggling with rising costs will see much-needed relief as the Marape-Rosso Government implements a GST exemption on 13 essential goods. This policy, announced through the Internal Revenue Commission (IRC), will be in effect from June 1, 2025, to June 30, 2026.
| No. | Item | Description |
| 1 | Baby diapers | All types of baby diapers |
| 2 | Tinned fish | Includes mackerel, tuna, sardines, salmon, anchovies, etc… |
| 3 | Cooking oil | All edible vegetable oils (soya bean, canola, olive, coconut, mustard oil etc…) |
| 4 | Biscuits | All varieties including cream and salted biscuits |
| 5 | Wheat Flour | Plain, self-raising, and whole meal (wheat-based only) |
| 6 | Chicken | Fresh, sliced, frozen, processed and packed |
| 7 | Instant Noodles | All types packaged with seasoning (excluding pasta) |
| 8 | Coffee | Ground, powdered, or beans (excluding iced/hot coffee drinks) |
| 9 | Tinned Meat | All varieties including beef (ox & Palm), chicken, pork (Tulip) |
| 10 | Rice | Common rice types (including basmati, jasmine, long grain, brown rice etc…) |
| 11 | Sanitary Pads & Tampons | All types |
| 12 | Soap | All solid bar soaps (excluding liquid hand wash and dishwashing liquids) |
| 13 | Tea | All types and packaging (excluding iced/hot tea drinks) |
The tax relief, aimed at reducing the financial strain on families, applies to a range of fundamental items—including baby diapers, tinned fish, cooking oil, wheat flour, chicken, instant noodles, coffee, rice, soap, sanitary pads, and tea. The removal of the 10% Goods and Services Tax (GST) ensures that consumers can purchase these products at lower prices, making daily necessities more affordable.
The PANGU-led Marape-Rosso Government has positioned the policy as a direct response to economic challenges and increasing living expenses. A spokesperson from the Prime Minister’s Office emphasized the significance of the tax exemption, stating:
“This is a government that listens to its people. By removing GST from essential goods, we’re ensuring families can stretch their budgets further while improving overall access to critical hygiene and nutrition products.”
This decision benefits low-income and rural communities, where affordability is a pressing concern. Households will experience greater purchasing power, enabling them to buy more with less.
Beyond consumer relief, the tax exemption is expected to stimulate local markets by increasing demand, thereby benefiting retailers and suppliers. Economic experts predict that the policy will enhance trade activity, fostering business growth in retail and distribution sectors.
Under IRC guidelines, all retailers, suppliers, and traders are legally mandated to reflect the zero-rating of GST in their pricing. IRC Commissioner Sam Koim has issued a stern warning against non-compliance:
“Businesses must adjust their prices accordingly. Any attempt to retain GST or maintain pre-exemption pricing will be considered a violation of tax laws and penalized under the Goods and Services Tax Act 2003.”
The IRC, PNG Customs Service, and the Independent Consumer and Competition Commission (ICCC) will monitor businesses to ensure compliance. Investigations and penalties will apply to offenders who fail to pass on the tax benefits to consumers.
For many Papua New Guineans, the policy signals long-term economic security, mitigating inflation concerns while improving public access to essential goods. Consumer advocacy groups and economic analysts alike have praised the initiative as a decisive move toward protecting vulnerable households.
As the GST exemption takes effect, businesses and families alike will be watching closely—hoping that this tax relief will bring meaningful change to daily living expenses across Papua New Guinea.