PNG's Opposition says LNG tax exemption is bad

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Updated March 10, 2010 18:07:27

Papua New Guinea's former Treasurer. Bart Philemon says the government's move to give participants in the Liquefied Natural Gas project exemption from paying income tax, is a dangerous precedent which deprives the country of revenue. Parliament passed laws on Monday to exempt the interest withholding tax and GST from the Exxon Mobil-led LNG project. The laws passed were amendments to the Income Tax Act, and the Goods and Services Tax Act. The Prime Minister Sir Michael Somare has defended the amendments, saying they had been negotiated over a two-year period to bring in the investor. But Mr Philemon says granting exemption on income tax was unnecessary.

Presenter: Warium Benson
Speaker: PNG's Deputy Opposition Leader and former Treasurer, Bart Philemon

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