Papua New Guinea Budget 2019
Building a Broader Based Budget
Building a Broader Based Economy was the key theme of the 2019 PNG Budget, delivered to parliament on 12 November 2018.
There was a strong focus on continuing to improve revenue collection. While it was a relatively quiet year for tax reform, the Government re-emphasised its commitment to the implementation of the government’s medium-term revenue strategy (MTRS). This contains some significant proposed tax reforms for the years to 2022.
Key tax changes announced in the 2019 National Budget include:
- Loss carry forward rules substantially shortened from 1 January 2019 with retrospective effect
- Zero rating for supplies to the resource companies removed from 1 January 2019
- Increased in resident’s tax free threshold from K10,000 to K12,500, and next bracket from K18,000 to K20,000.
- IRC granted powers to prosecute IRC officers and other external offenders in respect of corrupt practices
- Income Tax Regulations amended to allow Commissioner General to make decisions on outstanding Research and Development claims
- Measures have been put to protect and encourage local Industry.
Published: November, 2018