Home > Corruption, Human rights, Land, oil palm, Papua New Guinea > Why do foreign owned companies pay no tax while PNG workers do and our health services crumble?

Why do foreign owned companies pay no tax while PNG workers do and our health services crumble?

In yet another corrupt deal Peter O’Neill and Belden Namah have approved a 10-year tax exemption for the Malaysian company running the Bewani Oil Palm project in West Sepik province….
The Papua New Guinea Government has approved a 10-year tax exemption for the developer of the Bewani Oil Palm project in West Sepik province. This was announced by the Parliament-elect Prime Minister, Peter O’Neil, during the official oil palm planting ceremony at the Imbio project site. Deputy Prime Minister Prime Minister, Belden Namah, is a major player in the Bewani Oil Palm Project. The tax holiday approved by Cabinet, will exempt the developer from paying certain taxes to the State Earlier, a company representative highlighted that they had so far invested K120 million (US$58 million), to kick-start this project. This capital investment, covered costs incurred in clearing the forest – one of the major ground works.It included planting costs, for the establishment of oil palm nurseries at the Bewani and Imbio sites, amongst other preparatory work for the project. The representative says, more work will be done for the set up of the third and fourth nurseries, with seedlings coming in from the New Britain Oil Palm plantation. He further assured the Government, that the company has plans to establish schools and houses for the local communities, besides other economic benefits. Meanwhile, Parliament elect Prime Minister, Peter O’Neil, has heaped praise on his deputy, Belden Namah, for spearheading the Bewani Oil Palm project, which took several years to gain fruition. He says the project will give a fair economic participation for the people of West Sepik, particularly the locals from Namah’s Vanimo Green River electorate. O’Neill challenged those gathered, to fully support Namah’s leadership during the coming elections, if they want Government services to continue flowing into their District. He is also grateful the Bewani Oil Palm project, will create a lot of income earning opportunities and jobs for the locals, among other spin-off benefits. O’Neill further called on the people of West Sepik to back this project, because it will provide assistance which the Government alone cannot give. He stated such partnership between the people, the developers and the National Government is vital, to promote development to take place throughout the country.
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  1. pontuna2run
    March 4, 2012 at 7:35 am

    What about me and my small business? I want thirty years tax exempt

  2. Karsie
    March 4, 2012 at 2:50 pm

    This is absolutely absurd. PNGians are treated slaves in their own country. How could struggling working men/women of PNG pay taxes to govt and yet multi million Kina international conglomerates be exempted? This is insane and demonstrates how stupid and unintelligent our leaders are. Who do they represent? Interest of indigenous PNgians and the country or their own those of foreigners?

  3. John
    March 9, 2012 at 2:14 pm

    The country’s economy would already benefit financially from companies that export. If a country is shopping for foreign investment to develop these export industries, incentives such as tax breaks are a must.

    http://www.ipa.gov.pg/index.php?option=com_content&task=blogcategory&id=109&Itemid=136

    The above link is an exsisting policy that Papua New Guinea has to attract investors. Most developing countries would have similar policies. Not every business that is granted tax free status is guaranteed to “print money”. A tax incentive is a great way to help lower risks for the investor, and the country benefits from the Kina strengthening through foreign trade. Later when those start up businesses grow large, PNG will be able to tax them for decent earnings. It’s no use taxing a startup business until it dies, let them grow and then tax them.

  4. Vaclav Havel
    May 10, 2015 at 5:49 am

    If there’s anything that would indicate that our current elites have sold their souls to Mammon, this debacle would be it. Reading this, I find myself writhing in fury at the flagrant injustices that are done to our people by our leaders, who have abdicated altogether their responsibility to us in their lustful pursuit for MORE money and MORE power. I feel deeply for my fellow countrymen, especially those who bear the brunt of such heinous policies, who feel helpless and powerless in the face of such insurmountable obstacles to improving their lives, given just how much the game is stacked against them. Our elites have gamed our system to their own advantage, expropriating our national wealth while consigning us to poverty and destitution. I fear that if things continue the way they are now, we will have no other choice but to mount a political revolution to oust those corrupt leaders from office. Blood might have to be spilt, and violence perpetrated, if we are ever to wrest control of our country back from these special interests.

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