Changes to speed up gas, mining projects
Post-Courier (PNG), Copyright 2000
November 29, 2000
MAJOR changes had been proposed in the Budget for fiscal regime for the mining and petroleum industry, Prime Minister Sir Mekere Morauta said yesterday.
Sir Mekere said these changes should assist the development of the PNG Gas project, which he said was expected to proceed to front-end engineering and design by the end of this year.
He said changes should also encourage new mining and petroleum exploration and development. Sir Mekere said the major changes include:
*A general framework to guarantee fiscal stability is proposed, with the term based on the financing period.
*Incentives proposed for the marginal projects, through lower corporate tax rates and phasing out of the mining levy.
* Incentives proposed for exploration through more liberal allowances.
* Revenue to the State to be higher from profitable projects and payable earlier through a revised additional profits tax;
* The removal of the resource tax administration.
Most of the recommendations made by the tax review committee had been included.
However, the industry had expressed concern about the proposed two-tier APT tax system, although no changes seemed to have been done.