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Director‘s Message

LAUNCH OF NRI REPORT ON TAXATION POLICIES AND PRACTICES AFFECTING THE INDIVIDUALS AND BUSINESSES IN PNG
14 OCTOBER 2014

I want to take the opportunity to make a few points before launching the report. May I first thank the NRI team and the many authors engaged in the many studies that have led to the key recommendations captured in this report?

I also want to take the opportunity to thank the Taxation Review Committee for their support to the NRI work. I also want to acknowledge and thank DFAT for financial support that made this work possible.

The recommendations from the studies commissioned have been presented to the Taxation Review Committee headed by Sir Nagora Bogan. However, the NRI has decided to release this report in this public forum.
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PRIVATIZING PNG POWER IS NECESSARY BUT NOT SUFFICIENT FOR IMPROVED ACCESS TO ELECTRICITY
23 SEPTEMBER 2014

The PNG Power problems that have come to the limelight recently had been festering for some time and the current Government's announcement to privatize this entity and other State Owned Enterprises (SOEs) is welcome news. However, from the statements made, it is not clear what aspects of PNG Power will be privatized, where and how competition can be introduced, where can Public Private Partnerships be introduced and how regulatory functions that obviously cannot be privatized, is retained under State control. There is obviously a need for more thorough analysis and proper structured reforms undertaken after considerable consultations among all stakeholders. Whatever decision is taken, the problems will not be easily resolved but will take time for the full results to emerge, only if consistency is maintained in implementation.

Divesting ownership in its current form may not result in desired outcomes. It will only be a “band aid” approach and will not address adequately all the underlying problems. We need to look objectively at what we want to achieve and then explore the different mechanisms through which we can attain the end goals.

In this commentary, I look at PNG Power issues and discuss possible options for reforms.

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Have your say in shaping the future taxation system in PNG

The Government of Papua New Guinea and its citizens, through the Tax Review Committee, are reviewing and designing the country's future taxation system, the NRI would like to expose the issues discussed at the Tax Research and Review Symposium for further debate and discussion. The NRI therefore invites comments and suggestions from the general public on any of the taxation topics.

Click here to download latest Research Papers from the Taxation Symposium.

 

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