The Papua New Guinea Government offers a number of incentives to help develop the local manufacturing sector.
For example:
Credit: Nestlé
- Industrial plants not previously used in PNG are eligible for increased depreciation up to 100% of cost.
- The initial year accelerated depreciation allows faster writing down of the capital cost of certain new assets.
- Double-deduction for export market development costs for goods made in PNG, or where PNG labour cost exceeds 10% of the sale price of the product.
- Profit made from export sales of certain PNG-made goods qualify for company income tax exemptions for the first three years. A different formula applies for exemptions for the next four years.
- A duty drawback rebate paid to exporting manufacturers when they export goods of the same value as the amount of duty already paid on the raw material.
- Companies manufacturing new products may receive a subsidy payment of 10-40% for up to five years based on a percentage of the relevant minimum wage for each full-time local employee.
Source: PNG Investment Promotion Authority
First published in Made in PNG 2012
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Good information on incentives for manufacturing industry. I need some detailed information on the incentives. Would you be able to email me anything?