28 Sep 2002

PNG Supreme Court says country's value added tax is constitutionally invalid

9:17 am on 28 September 2002

Papua New Guinea's Supreme Court has ruled the country's ten per cent value added tax constitutionally invalid.

The Court says the power to levy sales taxes is held by the provinces and cannot be used by the national government at the same time.

The judgement, which comes as the government puts the finishing touches to its 2003 budget, could leave an eighty one million US dollar hole in the government's financial forecasts.