In an exciting move that prioritizes the well-being of its citizens, the Papua New Guinea government has disclosed its ambitious K28 billion national budget for the year 2025, aptly themed “Securing PNG in 2025 and Beyond.” During a recent press lock-up held at Parliament House on November 30, 2024, Treasurer Ian Ling-Stuckey detailed plans to exempt consumption tax on essential household items—campaigning to ease financial pressures on families.
In a proactive effort to improve the quality of life for everyday citizens, the proposed budget focuses on eliminating goods and services tax (GST) on a range of staple items. According to EMTV, everyday essentials such as rice, tea, coffee, tinned fish and meat, flour, chicken, noodles, as well as personal care items like diapers and sanitary pads, will no longer be burdened by tax charges. This initiative is expected to significantly lower living costs for many households, providing instant relief for low-income families.
“This Budget marks a turning point,” Ling-Stuckey announced passionately. “It emphasizes a genuine commitment to fostering the security necessary for creating a brighter future that our children deserve.” The Treasurer highlighted that this financial framework is designed to improve lives for the next half-century.
In response to the increasing cost of living and the need for economic reform, University of PNG economist Andrew Anton-Mako previously called for this move, drawing inspiration from Fiji’s successful strategies aimed at reducing hardships for low-income families. His input reflects a rising trend among Pacific nations to adopt more inclusive economic policies.
While the government is taking significant steps to support its citizens, the budget also proposes an increase in income tax for higher earners. Individuals earning more than 70,000 kina (approximately NZ,000) will now incur a steep 40 percent tax rate on any earnings exceeding that threshold. This measure is a means of redistributing wealth and ensuring that essential public services remain funded and accessible to all.
The positive implications of the 2025 budget reflect a growing recognition of the importance of social welfare and economic sustainability in Papua New Guinea. As the government embarks on this bold financial path, citizens can expect not just short-term relief but also long-term benefits aimed at fostering a more equitable society.
As PNG positions itself for a prosperous future, the nation continues to highlight the importance of investing in its people—a vision that may well serve as a model for similar economies across the region.
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