Tuesday, May 22, 2012

Mining and petroleum paid K12.7 billion to government


The mining and petroleum industry paid K12.7 billion to the national government between 2005-2010, according to the PNG Chamber of Mines and Petroleum, The National reports.
Chamber executive officer Greg Anderson said this when reiterating its view on the Current Mining Act and the Proposed Mining (Amendment) Bill, which seeks to transfer mineral and petroleum ownership from the state to the landholders.
According to the current Mining Act, and Oil and Gas Act, all minerals, oil and gas existing on, in or below the surface of any land in PNG are the property of the state.
The chamber is concerned that transfer of mineral and petroleum ownership from state to landholders would be to the detriment of all concerned, including tangible benefits such as money.
“The mining and petroleum industry paid K9.7 billion in corporate tax, over K1.2 billion in dividends, K1.3 billion in royalties and over K0.54 billion in dividend withholding taxes to the national government from 2005 – 2010,” Anderson told a mining and petroleum workshop for PNG media last Friday.
“This totals K12.7 billion, an average of more than K2.1 billion a year.
“In addition, the industry contributes significant amounts in salary and wages tax, duties and levies, and the tax credit scheme, as well as dividends to some host provincial governments and landowners.”
Anderson said PNG’s mining and petroleum industry was the backbone of the economy and contributed over one-third of government tax revenue.
“It provides about 80% of the total national export income and 24% of the gross domestic product (GDP),” he said.
“Formal employment in the resource sector has increased to well over 30,000.”
Anderson said  benefits provided by the resource projects were diverse and substantial and included: taxes (company tax, royalty, dividend withholding tax, salary and wages tax, duties, production levy), dividends (equity), tax credit scheme projects, special support grants and development levies, employment, education and training, public health programmes, business and agricultural development, and community infrastructure
Trucks owned by IPI Group of Companies, a landowner company success story from Enga province, which benefits from Porgera gold mine

“Papua New Guinea has one of the most-equitable benefit sharing systems in the world for mining and petroleum developments,” he said.
“It includes the national government, affected provincial and local level governments, and the impacted communities.”

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