Call to stop tax breaks for mining companies after government locks in K20,000 tax threshold

The PNG Anti-Corruption Movement for Change is calling on the government to stop tax holidays on offshore transactions by big mining companies.

Movement president Dilu Okuk's comments came after the government announced it would permanently lift PNG's tax-free threshold from zero to K20,000.

That means people earning less than K20,000 will pay no tax.

When handing down next year's national budget earlier this month, Treasurer Ian Ling Stuckey said households earning up to K20,000 would save K63 per fortnight because of the tax break.

However, when noting numerous concerns from the general public on the issue, Mr Okuk told NBC Current Issues the change was unfair for the working class and especially those earning above the K20,000 threshold, as they will be heavily taxed.

He added that over the years, the government has been relying on taxes as its biggest revenue stream and has not really focused on other initiatives to expand revenue.

Mr Okuk said huge International Monetary Fund loans, taken out for State Owned Enterprises Reform programs to raise revenue and assist the government repay its loans, had not delivered any improvements for SOEs including PNG Power Ltd and Water PNG.