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PAPUA NEW GUINEA RAINFOREST CAMPAIGN NEWS

Export Duty Tax on Logs May Be Cut

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Forest Networking a Project of Ecological Enterprises

http://forests.org/

6/4/98

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Title: Export Duty Tax on Logs May Be Cut

Source: The National

Status: Copyright, contact source for permission to reprint

Date: Friday June 5th, 1998

Byline: By MORESI RUAHMA'A

PORT MORESBY: The Forest Ministry is taking steps to reduce the Export

Duty Tax (EDT) on logging operations to help resurrect the industry,

according to the PNG Resource Owners' Association.

PNGROA officials said at a press conference here on Tuesday that

Forest Minister Dr Fabian Pok has made submissions to the National

Executive Council in this regard, and he has told the resource owners

that he would get back to them in two weeks.

During these two weeks, Dr Pok also hopes to receive a response from

the World Bank to his submissions to reduce the EDT, said the interim

chairman of the PNGROA, Mark Maipakai, of Gopera Investment Pty Ltd in

East Kikori.

The landowner representatives who are meeting here, said the Minister

has assured them that he would assist them in reviving the forestry

operations which have been severely affected by the high EDT.

The landowner representatives also appealed to the Government to

reduce the EDT, which was imposed by the Government early this year,

forcing the closure of many logging operations around the country.

"Most rural people who rely on the industry for their livelihood are

in a very sorry state, roads are deteriorating, and government

services cannot reach the people because of the closure of forestry

operations,'' said a landowner representative from Vanimo.

The association members said that Dr Pok had assured them during a

meeting on Tuesday that he would press for a reduction in the EDT.

Dr Pok could not be contacted for his comments yesterday.

Meanwhile, the landowner representatives claimed that about 10,000

people have lost their jobs as a result of the closure of the forestry

operations since the beginning of this year.

"Thousands of resource owners have lost their income earning

opportunities, rural services once provided by the logging operations

are now cut off, infrastructure projects are at a standstill and

business development programs that were enhanced by the logging

operations have now come to a halt,'' said Mr Maipakai.

"Our association is therefore petitioning the Government through the

minister to reduce the high EDT as a relief measure so that operations

can resume,'' said Mr Maipakai.

He said all they were asking for was a fair, realistic and effective

tax regime so that there was room for operation.

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