Posted By Staff Reporter
Business in the tourism industry could be slow next year after the government took significant measures to increase the departure tax much higher than before.
According to the Director of the PNG Institute of National Affairs Mr. Paul Barker, the increase may not collect a lot of money as intended in the 2017 National Budget, but may discourage tourism.
The departure tax has been increased from K30 to K114 to maintain real value of departure tax eroded by inflation over time.
The measure is expected to raise the government revenue by K20million in 2017 and will come into effect on the 1st of January 2017.
“Yes they say just to bring it up to the level it was before in real terms, but if we are trying to encourage the tourism industry, PNG is already a very high cost destination for tourism having a lot extra taxes, we already have a lot of taxes on air transport, it may be sending the wrong message,” said Mr. Barker.
A departure tax is a fee charged to a person or persons leaving the country and when the government is adamant in promoting tourism, this may contradict what the government is trying to do for the tourism industry.
Next news >> K1.2 million robbery suspects still on the run
Papua New Guinea daily News updates
Let Your Voice be heard: Submit your news articles, commentaries, letters , Photos, Media Releases etc to us on this email: firstname.lastname@example.org
Subscribe for News Alerts
Get Breaking News Headlines through Email: Subscribe Now