Govt plans tax breaks for oil palm industry
Copyright 2001 The National (PNG)
April 24, 2001
AGRICULTURE and Livestock Minister Muki Taranupi has announced plans for tax incentives in the oil palm sector designed to encourage growth and boost production.
The minister, who was in Kavieng to open the 37th Oil Palm Industry Corporation (OPIC) Board meeting, said the Government will offer tax credits to oil palm estates that help in the development of infrastructure, and reduce import duty on agricultural imports.
Mr Taranupi said the Government fully supports existing estates in the oil palm industry, and the decision to offer tax credits to estates that build road network in the community confirms this support for the industry.
He said the road infrastructure established by the estates to service the oil palm settlement schemes and the village oil palm blocks also benefitted the community at large.
He said oil palm has brought development into many rural areas, particularly in the oil palm growing provinces.
The minister said he has also directed his department to examine the possibility of reducing import duties on imported agricultural equipment and implements including fertilizers.
Mr Taranupi said oil palm in the tree crop sub-sector is now a very successful industry earning about K200 million annually and therefore makes a significant contribution to the economy of PNG.
He noted that small-holder production rose from 324,800 metric tonnes of fresh fruit bunch in 1996 to 522,900 in 2000. This indicated a steady growth of the industry involving thousands of small-holder growers, he said.
Mr Taranupi said he was pleased that there was increasing interest among small-holders and estates to expand investment in the industry.
The minister attributed the success of the industry to OPIC's effective extension management support which has led to an increase of 23 per cent in small-holder production in 2000 over the 1999 production and 16 per cent over the annual target.
The minister also witnessed the signing of a Memorandum of Agreement (MOA) between OPIC, the New Ireland Oil Palm Growers Association and the provincial government.
He promised that the Government will negotiate with the provincial governments for the future use of derivation grants which should be utilised to support the maintenance of existing and future infrastructure in the oil palm growing areas.