Development Policy Centre Podcast

The independent Tax Review Committee (TRC) established by the Government of PNG recently completed a comprehensive review of the country’s tax system involving extensive and transparent stakeholder consultation over the course of two years. This culminated in two volumes of reports (inclusive of significant economic and tax reform recommendations) which were formally presented to the PNG Government in November, 2015. The final report highlighted the high risks of PNG’s overdependence on the extractive sector and its vulnerability to the cyclical vagaries of global commodities pricing and recommended a ‘paradigm shift’ in the governance, management and stimulation of sustainable economic development. PNG’s vulnerability has become pronounced in recent months with the sudden drop in the oil price resulting in fiscal distress, lack of foreign exchange, and economic slowdown. PNG is at a precarious crossroads and tax reform provides an opportunity for a strategic transformation. The report provides some realistic