7 Dec 2011

Tax cuts for low income workers a feature of PNG budget

2:50 pm on 7 December 2011

Many low paid workers in Papua New Guinea will no longer have to pay income tax after the government announced it's lifting the threshold at which tax is paid from seven to ten thousand kina.

The Peter O'Neill government presented its budget for 2012 yesterday outlining increased allocations for education, health and infrastructure development.

The government says it will push ahead with free education up to year 10 from next year, as well as additional subsidies for senior high school and tertiary students.

While only a small proportion of workers are in the formal wages sector, our correspondent, Jonathan Tannos, says the tax changes will have a significant effect because each wage earner often supports up to ten people.

"This just basically covers all sectors and for the low income families I think it's a matter for them to be happy because they'll probably have a bit more rice and tinned fish on the table in the evenings."