Public urges GST relief beyond 2026
Ordinary Papua New Guinean citizens hope to see government relief assistance, like cuts in Goods and Services Tax [GST] on basic items, continue after the one-year implementation timeline from June 1, 2025, to July 31, 2026.
The Zero Tax Rating Initiative, which came into effect in June this year, is expected to end in July 2026.
On the other hand, whilst many welcome the new minimum wage rate increase from the current K3.50 per hour, they say this is still not sufficient.
NBC News spoke to several people about the impact of the zero-tax rating on basic items, including the minimum wage rate increase. As for the GST zero rating initiative, many indicated that they saw a slight difference in prices during the first month or so.
However, prices have gone up again, mainly on the 13 basic household items such as rice, tinned fish, cooking oil, and others.
The people approached were reluctant to speak on camera but shared their views off-camera.
“Mipla baim na ol rausim tax gen yah em blo wanem samting, nogat point bilong disla.”
Another person said “Tingting bilong mi em olsem gavaman needim long make sure ol binis i daunim ol prais, olsem ol sampla ol wok sampla em ol market lo kisim liklik moni long lukautim ol yet. Na taim GST i go bek antap gen, em bai affectim ol long kisim kaikai na ol smating.”
“Mipla laikim dispela assistance mas continue yet so umi ken sustainim umi yet.” another person said.
This newsroom has raised the matter with the Internal Revenue Commission; however, no feedback has been received.
Citizens were also asked about their thoughts on the new minimum wage rate of K5, expected to take effect from January 2026.
“Mipla wokim traipla hatwok lo traipla sun na raun but pei bilong mipla i no long mak. mipla i laikim long em bikos em siti yah na mipla need long feedim ol femili. Mipla kisim pei long mak olsem K2.20 per hour.”
“Gutpla olsem ol i toktok long apim rate igo antap long K5 bikos prais bilong ol kaikai too igo antap, na disla K3.50 rate yah em ino inap long mipla, especially long siti long baim kaikai samting.”
“Yeah, mipla laikim senis long kamap long neks yia. Like K5 rate or K6 or K10 em bai orait stret long wanem now dispela taim sapos u go insait long stoa na senis K50 em bai pinis nating olsem wara.”
Many are calling on the government to continue the GST relief assistance after June 2026, as well as look at further increasing the minimum wage rates, given the high cost of living.
Meantime, the Minimum Wage Board has confirmed that the new minimum wage rate of K5 per hour will officially take effect from January 1, 2026, and gradually rise to K5.50 by 2028. Chairlady Beverly Doiwa said the new rate aims to bring some relief to workers and their families while balancing business sustainability.
She said the increase followed nationwide consultations and would ensure a fair wage that reflects current economic realities.
The announcement has been welcomed by many low-income earners, though they say rising prices on basic goods continue to make life difficult even with the expected pay rise.