City Pharmacy updates prices following GST Zero rating of essential goods
City Pharmacy, part of the CPL Group, has updated its pricing systems to comply with the new ‘GST Zero Rating of Essential Goods’ policy issued by the Internal Revenue Commission [IRC].
Starting from today, 1st June 2025, selected essential goods will no longer be charged Goods and Services Tax [GST]. This GST zero rating will remain in effect until 30th June 2026.
The Internal Revenue Commission, along with the Independent Consumer and Competition Commission and the PNG Customs Service, recently announced the nationwide rollout and enforcement of this policy.
It covers 13 essential household items and aims to help Papua New Guinean families manage the rising cost of living.
- Baby diapers
- Tinned fish
- Cooking oil
- Biscuits
- Flour [wheat]
- Chicken
- Instant noodles
- Coffee
- Tinned meat
- Rice
- Sanitary Pads
- soap [bar only]
- tea
This initiative is part of the government’s broader economic relief measures designed to ease financial pressure on households.
Internal Revenue Commissioner General Sam Koim had initially stated that, though it may not make much of a difference, the government is also offering relief in other areas like education, health, salary, and wages.
In terms of monitoring and enforcement, a joint taskforce of IRC, ICCC and PNG Customs will monitor pricing behavior, investigate complaints, and penalize those businesses who do not comply.
Businesses and retailers found to continue to charge GST on zero-rated items or continue to retain the same price without passing savings onto customers will face fines between K1000 to K50,000.
