Commissioner General Sam Koim of the Internal Revenue Commission has taken a commendable and necessary stand against tax avoidance practices by certain multinational corporations operating in Papua New Guinea.
This issue requires urgent national attention to prevent the silent loss of wealth generated from the country’s natural resources, which undermines development and the well-being of its people.
It is crucial to maintain a clear distinction between original resource projects and new project extensions or additional investments. Original agreements—including capital commitments and tax concessions—must be allowed to run their full course, enabling Papua New Guineans to fully benefit from mature projects.
New projects or extensions, however, must be evaluated independently. Any new capital investments and associated tax incentives should be negotiated on the merits of the new proposals rather than inherited from existing agreements. This separation is essential to ensure transparency and fairness.
The State Negotiation Team must resist tactics that attempt to blur these distinctions to the detriment of PNG’s interests. Developers genuinely committed to new investments should be willing to negotiate fresh terms reflecting current economic conditions. Those unwilling should be free to walk away.
It is imperative to reject strategies that undermine PNG’s economic sovereignty. Commissioner Koim’s call highlights the need for patriotic vigilance and a nationwide conversation to safeguard the country’s rightful share of its resources.
The wealth of Papua New Guinea belongs to its people and must be zealously protected.