Review of resource laws next year, acting Tax Commissioner warns of criminal action against companies not forwarding taxes to government and wholesale internet prices may drop by two-thirds. Your weekly digest of business news.

Petroleum Minister Kerenga Kua. Credit: PNG Echo

Petroleum Minister, Kerenga Kua, has told an LNG conference in Tokyo that the government plans to begin working with foreign investors to review natural resource extraction laws next year to ensure the country benefits from its resources. Kua says the current laws are more than 40 years old. The review will be done in consultation with development partners and foreign investors. (Post Courier)

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The Acting Tax Revenue Commissioner, Sam Koim, says there is a growing trend by public and private companies to divert salary and wage taxes to help run the business. Koim noted that in order to stop this ’growing trend’ he would look to pursue criminal penalties against officers and directors of any companies engaging in this practice. (IRC)

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The National Information and Communication Technology Authority has indicated the wholesale internet price will be set at US$100 (K341.12) per mbps (megabytes per second) when the Coral Sea Cable is commissioned. CEO Charles Punaha says the wholesale bandwidth in PNG current cost of US$300 (K1030.18) per mbps was the highest in the Pacific and the cost needed to be lowered. (The National)

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The PNG Chamber of Mines and Petroleum is calling on the Government to seriously consider the implications a revised Mining Act would have on the country’s economy before tabling the Bill. It is due to be tabled next month.

The chamber claims amendments would render the mining industry in PNG internationally uncompetitive, would be a serious deterrent to investment in future mining projects, and may even threaten the ongoing operations of mines currently in operation. (PNG Chamber of Mines)

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Treasurer Ian Ling-Stuckey has told the Asian Development Bank that the government is moving to improve economic management when he brings down a Supplementary Budget next month to ensure it retains K320 million for health spending. He said the former government’s ‘economic mismanagement’ had put the K320 million at risk. (Post Courier)

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Swire Shipping will be replacing its fleet servicing PNG and the Pacific with eight new ships next year. National Commercial Manager Andrew Wong says the new ships will be larger than the existing container vessels and emit less sulphur into the atmosphere. (Post Courier)

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The Speaker of the ABG and the President signing the Declaration Credit: New Dawn FM News.

The President of the Autonomous Bougainville Government, John Momis, has declared the province ‘referendum ready’, after MPs reported their constituencies were weapons-free. He said the last 15 per cent of weapons were handed in on Friday (27 Sept). (ABG)

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PNG’s foreign exchange reserves dropped by US$400 million (K1.3 billion) in the six months from December last year, according to the Asian Development Bank Outlook 2019 report.

Foreign exchange reserves fell from a US$2.3.billion (K7.82 billion) in December 2018 to US$1.9 billion (K6.46 billion) in May 2019 as the Bank of Papua New Guinea injected foreign currency into banks for distribution to private enterprises. (ADB)

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Papua New Guinea’s climate action initiatives have been accepted at the 74th United Nation General Annual meeting in New York. The three initiatives are: sustainable forest management; fossil fuel abatement for diesel-based power systems and the scaling up of hydropower/solar energy.

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PNG Air has recorded a profit of K8 million, despite a decline in passenger numbers. The result reflects charter and freight revenue increases, plus cost reductions. (The National)

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ANZ Bank has completed the sale of its retail, commercial and small-medium sized enterprise (SME) banking businesses to Kina Bank. ANZ CEO Mark Baker says the bank will now focus solely on institutional and large corporate banking. The transfer to Kina Bank included 15 branches, 72 ATMs and more than 1000 Eftpos machines, as well as ongoing roles for ANZ staff. (EMTV)

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A four-kilometre ‘life-changing’ feeder road  has opened in Bung 3, Jiwaka Province. The K5m road, funded by the World Bank, will mean locals will no longer have to carry coffee bags and vegetables over mountains, and through streams, to get to the markets. (Post-Courier)

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Photograph of the week

Locally-made coconut shoes went on display at PNG’s first coconut festival last week. Hosted by Kokonas Indastri Koporesen (KIK), Acting Managing Director Alan Aku said the event showed potential investors how the copra industry was being managed and where the opportunities lay. Fifteen SMEs showed off their wares. (Credit: Rayner Paul via Facebook)