IT’S a very good deal for PNG LNG and its associated companies.
For each K100 million of development levy they pay to the PNG government, they can claim K30 million as a tax deduction.
For each K100 million of royalty they can claim K100 million as a tax credit.
So let’s express this is the little kina amounts which most of us understand.
For every K10 paid to PNG by the resource companies, they get K7 stripped off their tax bill.
This kick back is funded by the PNG government – or should I say the people of PNG.
This is the gross unfairness imposed on Papua New Guineans who aren’t from the so-called “gas provinces”.
So, while we sympathise with those landowners who await in frustration the payment of their royalties, we should also spare a thought for the taxpayers of PNG.
They are effectively foregoing hundreds of millions of kina because of the sweet deal the PNG government made to have its gas resource exploited by these big companies.
Think of what PNG could do with that kind of money if it was applied to urban and rural development projects that would benefit the people.