PNG Government expects over a billion in GST

The Government expects to collect over a billion Kina in GST under its Tax on Goods and Services component of the projected revenue for 2017.

Government estimates project GST to haul in K1,484.7 million (K1.5 billion) of the overall Tax on Goods and Services predicted revenue of K2,762.2 million (K2.8 billion).

The Tax on Goods and Services will also comprise of K691.1 million in Excise Duty, Import Excise of K300.3 million and K180.5 million in Gaming Machine Turnover Tax.

The Government states that the gradual increase in commodity prices and in the agriculture and mining sector in 2017 are expected to support income and spending on goods and services in the economy.

This is anticipated to be strengthened by the election related spending, sales and GST collections at the provinces and the ports.

The Government has also revealed that inflation will increase to 7 percent in 2017, which will raise the price on goods and services, medical services and housing prices.

Cedric Patjole