Tax reform is generally claimed by investors to be a potential sovereign risk. In 2013 industry reaction was predictably cautious when the Government of Papua New Guinea announced its commitment to a fiscal review and tax reform. The Government established a Taxation Review Committee, which initiated a ‘Blue Sky’ consultation process, whereby institutions, investors and community stakeholders were invited to formally submit their perspectives on broad directions for reform and key priority areas. In 2014 public forums included a National Research Institute of Papua New Guinea (PNG) sponsored ‘Taxation Research and Review Symposium’. The second stage in 2014-15 has involved the Taxation Review Committee issuing papers on specific taxation areas, such as petroleum and mining tax, and convening forums for more targeted discussion and debate.

Join Dr Diane Kraal and Dr Craig Emerson as they share their recent PNG tax reform experiences with a focus on the merits of state equity participation (SEP) versus a resource rent tax. While both these fiscal instruments are designed to capture resource rent and embody tax progressivity, support for one or the other is divided. In March 2015 the PNG Government’s Taxation Review Committee, the PNG Mining Act Review Committee and representatives from PNG’s mining industry were brought together in a workshop where each provided rationales on their position. This seminar overviews that workshop, that includes the open discussion that the presenters facilitated to find some areas of common ground between the groups. There could be lessons for Australia’s current tax reform process.
View paper here.

A Light lunch will be provided from 12 - 12.25pm.

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