Local businesses are the social welfare of the country

By MATTHEW VARI

Sunday, November 30, 2014 (Sunday Chronicle, PNG)

MEMBER for Goroka Bire Kimisopa has raised concerns on the ways businesses have been treated in the 2015 National Budget during the budget debate session held on Tuesday November 25.

He referred to the lack of changes in the tax system to reduce business tax, especially for locally owned businesses as a slap in their face considering the role they play in the country.

“It is a slap in the face of the private sector in the country, I sincerely hope that we can have a look at that and remedy some of the problems in the private sector,” he said.

“The world bank came up with a business ranking of all countries in the world of 189 countries and they have rank PNG 133 out of a 189.

“In other words it means to start a business in this country it is very difficult to access credits, some of the impediments affecting private sector growth in this country are so tough by comparable standards.”

“I think it is important we must critically have a look at the kind of investment we are going to make in the private sector.”

Mr Kimisopa said that he hoped that the government would have slashed company tax from 30 percent to 20 percent this year considering the increase in the minimum wages.

“I think the business will be turning their heads as they are paying wages and a considerable amount of money in taxes,” the member pointed out.

“Businesses are struggling in this country- despite wage fixation commencing next year, small businesses in this country are paying a lot.”

“I am not talking about foreign companies- I am talking about our people who are running businesses in this country!”

He said that locally owned business are employing the people in rural areas and were keeping citizen going through the social obligational roles most of them undertake for their workers.

“They are the social security net of this country in the absence of a social welfare cheque from the PNG government,” he added.

“If someone dies they pay for the coffins, pay bride price, pay school fee they will, we have to be aware of the fact that they are struggling.”

“The budget cannot not be just about numbers- there must be faces of the people in the budget. Budget must be for our people, they must find a place in the budget.”