29 Nov 2002

Papua New Guinea has new budget

11:50 am on 29 November 2002

Papua New Guinea has a new budget which provides for increased taxes and abandons free education, while planning to freeze wages across the public sector.

The 2003 budget increases company tax by five per cent to 30 per cent and hikes fees on cars, houses and foreign businesses.

The Treasurer, Bart Philemon, says the government will attempt to institute a wage freeze across the public service.

But the new budget does offer tax breaks to the PNG Gas Project and other desperately-needed mining ventures.

Analysts are shocked at the decision to increase company tax and raise fees for the few remaining foreign businesses.

The President of the Institute of National Affairs, Mike Manning, says there could soon be little for the government to tax.