Mining sector in Papua New Guinea continues to be the major contributor to the country’s economy, with two thirds of total export revenue being contributed by this sector.A recent review by Deloitte Touche Tohmatsu shows that the 2013 Budget anticipated K1,207.5 billion in tax revenue from the Mining and Petroleum sector.
The department of treasury however, revised the anticipated K1, 207.5 billion in tax revenue to K815.7 million.
The report attributes the lower mining taxes collected in 2013 to the decline in commodity prices such a gold and copper over the 2013 year.
The 2014 Budget anticipates Mining and Petroleum Taxes of around K1, 002 billion to be collected in 2014.
The report further states that a rebound in production is expected from the major mines following the disruptions encountered in 2013 due to bad weather, landowner issues and maintenance requirements.
The 2014 Budget provided no specific expenditure plan for the mining sector in 2014.