The Enga Provincial Government in Papua New Guinea is opposed to planned changes to the Value Added Tax.
The Government reached agreement with the Morobe Governor Luther Wenge this week to allow VAT to continue to be collected until July next year when it will be replaced by Goods and Services Tax or GST..
Under the GST, from 2004, the provinces will get the bulk of the revenue.
But Enga province says the GST will greatly disadvantage the rural provinces.
Enga governor, Peter Ipatas says the rural provinces are receiving fair and adequate benefits under the VAT regime and he says there is no need for a GST.
Mr Ipatas says the rural provinces do not have the capacity to collect the tax...and he says Luther Wenge does not represent Enga or any province other than Morobe. .
Governor Wenge had successfully claimed that the provinces were hurt by the VAT.