4 Oct 2002

Port Moresby administration may run out of funds in days after VAT ruling

4:27 pm on 4 October 2002

In Papua New Guinea, the National Capital District Commission, the governing body for the capital, Port Moresby, may be forced to lose down following the ruling that value added tax is unconstitutional.

The national government is today asking the National Court for a "stay" on the ruling - a decision is expected on Monday.

Our reporter, Peter Niesi, says the Port Moresby Chamber of Commerce discussed the issue at a breakfest meeting this morning.

"and at this breakfast Pricewaterhouse, the accounting firm, advised they would have to work with their clients on whether to keep collecting the VAT.......there is the possibility of a trust account, which has been broached by the Government, but in general there is a strong measure of concern over the ruling, particularly in Port Moresby, with the NCDC receiving about five million dollars in VAT revenue and without could be forced to close down within a fortnight"