MARAPE-BASIL GOVERNMENT LAUNCHED K611 MILLION PACKAGE OF ASSISTANCE TO FAMILIES IN PAPUA NEW GUINEA ON COST-OF-LIVING PRESSURES
K611 MILLION PACKAGE OF ASSISTANCE TO FAMILIES IN PAPUA NEW GUINEA ON COST-OF-LIVING PRESSURES
Press Release 21.04.2022 | Marape-Basil Government Fans.
“I was pleased today to announce a major K611 million package of assistance to our PNG families. The Ukraine-Russian war has driven up prices around the world, especially oil costs.
This is lifting cost-of-living pressures. The Marape-Basil Government is listening to our people and then acting responsibly. We cannot cover all of these global costs. But we can help. And if the war goes for longer, we will do more” stated the Treasurer, Ian Ling-Stuckey.
“After extensive consultations, this assistance will have four key elements.
“First, we will remove fuel excise and GST on all fuel products for six months. From the beginning of May, it will cost K107 less to fill up a 100 litre tank of petrol, falling below the pre-war costs on 1 February.
There will be major savings on other fuel products. All fuel products receive the 10% GST cut. In addition, all excise taxes will be removed. These are 61 toea per litre for petrol, 21 toea per litre for diesel and 2 toea per litre for Zoom. This will cost an estimated K250 million.
“Second, we will lift the income tax threshold from K12,500 to K17,500 from 1 June 2022 to the end of the year. Putting this in fortnightly terms, the estimated 200,000 workers earning at least K673 per fortnight will have their tax bill reduced by up to K42.30 per fortnight (depending on the number of dependents).
A further 20,000 workers with incomes between K480 per fortnight and K673 per fortnight will pay no income tax during this period. People on incomes of less than K480 per fortnight already pay no income tax so their tax payments cannot be reduced. This will cost K135 million.
“Third, we will fully fund school project fee costs in 2022. This will be administered through the Government Tuition Fee Subsidy scheme which is already being funded at the highest level in PNG’s history at K632 million.
The Government for 2022 will also pay for all legal school project fees, providing an extra 20% in the level of assistance. Administrative arrangements will be put in place that if a parent has already paid these fees, then they will be re-imbursed.
If the parent has not yet made the payment, the funds will go to the school directly. This will cost K126 million.
“And finally, we will work with local businesses to reduce the cost of all tinned fish, Ox and Palm, rice and flour by 10% at a cost of K100 million.
This will be through administrative contracts negotiated with the IRC. Feedback was that it was too complicated to have a temporary reduction in GST. We listened, and an alternative approach has been chosen.
“This is a major K611 million package to assist our families.
“The 2022 PNG budget is expected to have at least an extra K600 million in revenues flowing from the increased profitability of our petroleum and minerals sector.
These extra funds pay for this cost-of-living package for our families. We will re-direct these increased revenues back to our people.
This means that there will be no increase in the 2022 budget deficit or debt. We will continue with the Marape-Basil government’s steady path of budget repair and reconstruction.
“The government cannot deal with all of the impacts of the war, but we can help. And if the war continues, we will do more. This is a good, responsive, responsible government, listening to our people and businesses on cost-of-living pressures, while also protecting our children’s future through on-going budget repair” stated the Treasurer.
Hon. Ian Ling-Stuckey, CMG. MP
Minister for Treasury
21 April 2022