Revenue Generation is our Overarching Core Policy
Revenue Generation is our overarching core policy platform that supports our vision of economic independence. Resource-rich Papua New Guinea must sustainably generate sufficient internal revenue so it can be self-sufficient in funding it’s development agenda.
The number one [No.1] priority of People First Party is to raise PNG’s internal revenue from the current K15 Billion per year to K100 Billion per year by 2032.
Revenue is PNG’s biggest need. We continue to borrow and mortgage the future of our children in debt because we have failed to grow the ‘revenue pie’ whilst population growth has outpaced our development efforts.
Our primary goal of revenue generation will be achieved through:
1. Agriculture, downstream processing and import replacement as the engine for sustainable growth and employment;
2. Reform state-owned entities [SOEs] to reduce cost of doing business, and ensure SOEs are recapitalized outside of Government’s budget; 2.
3. Reform revenue policies and administration, establish revenue administration board to maximize revenue collection and protect revenue losses;
4. Introduce new legislation that will change the current laws in the mining and petroleum sector to achieve the following:
(a) Better economic rents for our mining and petroleum resources;
(b) PNG will no longer have to borrow to pay for equity in mining and petroleum projects but given free carry or free equity in all future projects, similar to countries like Malaysia [production-sharing scheme];
(c) All income from mining and petroleum companies are brought back first to PNG, and not kept offshore;
(d) Review and remove all fiscal incentives for the mining and petroleum sector that results in loss of revenue for PNG. The same will apply to other resource sectors like Fisheries, Forestry, etc;
(e) Operationalize the Sovereign Wealth Fund.
5. In Agriculture, we will offer the most attractive set of fiscal incentives to attract new large scale investors into the sector as part of our import substitution policy, and grow our exports.
6. We will also undertake land reforms to free up more customary land for large-scale agriculture projects in partnership with landowners under win- win partnerships;
7. We will also impost new export taxes on raw materials and semi- processed raw materials like cocoa beans to encourage downstream processing into final products like chocolates;
8. Establish a price stabilization fund.