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June 28, 2022
Featured News News Bulletin

Kimisopa: Tax cuts and 50 percent reduction in Superfund contribition needed to help ease economic burden

Goroka MP,  Bire Kimisopa, is calling on the government to introduce radical tax cuts as well as a 50 percent cut to super fund contributions by employers and employees.

Kimisopa says cuts to superfund contributions  will allow employers  to  recover from the pinch of hard economic times, and allow employees to save money.

Kimisopa, who was very vocal during the  passing of the 2017 budget, says the government can’t continue to be kind to the extractive industry and continue to tax other sectors.

There are various interpretations of the  state of the economy.  One of the words the government uses is – “manageable.”  This means  debt levels are within legal limits, we have money to spend on  important projects and revenue projections  are within acceptable margins.

Other commentators, meanwhile, argue that’s not the case.  That people are suffering, workers are being laid off  and the economy is actually shrinking.

Goroka MP, Bire Kimisopa, who  argued quite strongly against how the 2017 budget was represented  believes, the economy  is shrinking with spending power of ordinary Papua New Guineans  largely diminished.

Kimisopa argues that drastic solutions need to be put in place. Tax cut especially should be given priority.  Not just tax cuts to the mining and petroleum  industry but to other sectors as well.

Also, he says employer and employee contributions to superfunds should be slashed by 50 percent, and kept at that rate for several years, until the economy recovers.

Again, the arguments differ depending on which side of the house you’re on.  While the 2017 budget will continue to be defended, what can’t be denied is that companies are having difficulty importing, workers are being laid off.


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