Tag: papua new guinea

  • Illicit Sales Shrivel in Papua New Guinea

    Illicit Sales Shrivel in Papua New Guinea

    Photo: Anton Balazh

    The prevalence of illicit cigarettes in Papua New Guinea has declined remarkably, report the Papua New Guinea Post-Courier and The National, citing a report by the Manufacturers Council of Papua New Guinea (MCPNG).

    According to MCPNG CEO Chey Scovell, the share of tax-avoiding products has declined to 4 percent from 40 percent, allowing tax authorities to collect more revenue. “This is a massive drop, which has resulted in the PNG government taking back millions of kina in revenue from the illicit tobacco importers and sellers, when you consider that government was forgoing almost half a billion kina each year from untaxed illicit tobacco,” Scovell said. 

    He attributed this success to the implementation in 2019 of a new system to encourage manufacturers to produce and sell a smaller portion of their products at a reduced rate.

    “By allowing a 50 percent discount on taxed supplies, a real problem coming from high taxes has been addressed,” said Scovell. Previous high tax rates led to more illicit consumption, he noted. “Consumers in PNG faced prices as PGK1.20 ($0.32) for legal products compared to the PGK0.50 for illicit alternatives.”

    “Although there is still an ongoing battle to lower prices further, market observations reveal approximately 85 percent of consumers are shifting toward legal purchases,” Scovell said.

    “I appeal to the government to continue this so we do not go back to 2018 levels of illicit tobacco flooding our markets and causing the government and legitimate business to lose out,” he said.

  • Dire warnings given

    Dire warnings given

    A medical specialist in Papua New Guinea has given to a local newspaper a wide-ranging review of the health problems caused by tobacco smoking.

    The Nation said that, according to a senior consultant at the Pacific International Hospital, smoking killed 3,500 Papua New Guineans annually through lung cancer.

    Obstetrician and gynecologist Dr. Mathias Sapuri was quoted as saying that tobacco products contained acetone, tar, nicotine and carbon monoxide, and were harmful to the entire body.

    The risk of developing a variety of health problems was said to increase with smoking.

    Sapuri said unhealthy teeth, persistent cough, bronchitis, mood stimulation, anxiety and irritability were some of the common immediate effects of smoking.

    But over time, the damage to lungs led to increased infections, with smokers having a higher risk of developing chronic non-reversible lung conditions.

    “Smoking damages the entire cardiovascular system of the human body,” Sapuri said.

    “Nicotine causes blood vessels to tighten which restricts the flow of blood. The ongoing narrowing can cause peripheral artery disease.

    “Smoking also raises blood pressure, weakens blood vessel walls and increases blood clots which raise the risk of stroke.”

    Sapuri said smokers were at an increased risk of worsening heart disease if they had already had heart bypass surgery, a heart attack, or a stent placed in a blood vessel.

    Smoking was also detrimental to those who did not smoke; so children whose parents smoked were more prone to coughing, wheezing, and asthma attacks than children whose parents did not.

  • Licensing tobacco firms

    Licensing tobacco firms

    Tobacco companies in Papua New Guinea (PNG) will be required shortly to pay a license fee to operate in the country, according to a story in The Post-Courier quoting the Health Minister Sir Puka Temu.

    Speaking yesterday, Sir Puka said a law had been passed to that effect and the grace period had lapsed.

    The Tobacco Act was passed by Parliament in 2016 and certified by the Speaker in 2017 to become effective immediately.

    However, in April 2017, the National Executive Council (NEC) introduced a grace period to give manufacturers and importers time to make the transition to the new legislation.

    “I want to make it clear,” Sir Puka said, “that the Act is mandatory for all importers, manufacturers, and other businesses that deal with the tobacco products in PNG.

    “Sufficient time has been allowed for all operators to make the necessary adjustment.”

    Sir Puka said the purpose of the legislation was to control the manufacture, distribution, sale and use of tobacco and tobacco products, and that it would now be enforced because of the harmful effects of tobacco on people.

    However, the new law cannot be enforced immediately because the license fees have not been set; though Sir Puka said that his department was in the final stages of setting the fees.

  • Excise reforms praised

    Excise reforms praised

    A tobacco company has commended a government for reforms made to tobacco excise.
    According to a story in The Post Courier, British American Tobacco PNG has commended the Government of Papua New Guinea and Deputy Prime Minister and Treasurer Charles Abel for introducing positive reforms to the country’s tobacco excise regime.
    The reforms, aimed at helping to provide sustainable revenues, were announced on Tuesday as part of the 2019 budget.
    In part, the reforms were a step toward clamping down on the rise of untaxed and illicit tobacco products being sold in the country, BAT PNG’s GM Stephanus Duvenage was quoted as saying.
    “Illicit tobacco trade has been depriving the country of much needed revenue and has affected the legitimate industry for many years,” Duvenage said.
    “These excise reforms announced by the Treasurer will help level the playing field and will enable the legitimate industry to compete against illegal tobacco products which do not pay excise and therefore do not contribute to the PNG economy.”
    Duvenage said BAT PNG had been operating and contributing to the PNG economy since 1963.
    “The reforms as announced by the Treasurer will ensure companies like BAT PNG continue to contribute and invest in the country for many more years to come,” he said.
    “The O’Neill Abel Government has taken meaningful steps to tackle the fight against illicit tobacco and to recover revenue that rightfully belongs to the people of PNG.”
    The story did not mention what form the reforms had taken.

  • Don't smoke, chew or spray

    Don't smoke, chew or spray

    New tough penalties have been proposed in Papua New Guinea for people who chew betel nut, smoke tobacco or spray paint in public places, according to a story in The National.
    Offenders would incur fines of up to $US3,000 and jail terms of up to three years under a bill tabled in parliament on Wednesday.
    Prime Minister Peter O’Neill tabled the Summary Offences (Amendment) Bill, saying it was about “public health and wellbeing”.
    The bill covers all vehicles, government offices or private buildings that allow access to the public.
    Not all of the bill, as reported, seemed to make sense. In part, it was said to be aimed at ‘banning smoking and the illegal trade of tobacco in public places’, which would raise a few questions.
    Debate on the bill is expected to start when Parliament resumes sitting on November 6.

  • BAT in Papua agreement

    BAT in Papua agreement

    British American Tobacco has signed an agreement with the Royal Papua New Guinea Constabulary aimed at enhancing intelligence sharing in respect of illegal trade, according to a story in Papua New Guinea Today relayed by the TMA.

    Papua New Guinea is said to lose K250 million (US$78 million) annually to tax evasion.

    The co-operative relationship will include also various government departments and other law enforcement agencies.

    BAT director Naved Manzoor reportedly said that there were social and economic repercussions to the illegal trade. “When the money is not coming in through the right channel both the industry and the government is being depressed…,” he was quoted as saying.

    “The more serious thing is the social aspect. From our experience from across the world, we are seeing that this illicit money which is supposed to be diverted to the economy has been used to conduct illegal activities.”

    Police Commissioner Gary Baki said illicit trade remained a challenge for the RPNGC, which had a transnational crime unit and was in dialogue with other Pacific Island countries. “If we can talk about partnerships with other countries and cannot control what is happening in our country, I think that is a big challenge for us…,” he said.

    “Entering into this MOA [memorandum of agreement] gives us a stepping stone now to work together and curb this sale of illicit tobacco in the country…”

  • New control act for Papua

    Papua New Guinea photo
    Photo by TANAKA Juuyoh (田中十洋)

    Papua New Guinea’s Tobacco Control Act 2016, which has passed into law, will usher in much greater tobacco product control, according to a story in Papua New Guinea Today quoting the National Department of Health (NDoH).

    NDoH secretary, Pascoe Kase, said the Act granted power to the Governor General to nominate the dates the various parts of the Act should come into operation.

    “This allows for an organized implementation process which considers the impact on affected people and businesses,” he said

    The Act, which was passed in October 2016, is aimed at regulating the manufacture, importation, distribution, sale and use of tobacco.

    “Tobacco use is a global problem and the human consequences are devastating,” Kase was quoted as saying. “This is an important and exciting law reform for PNG.

    “Our poorest people are hit hardest by the effects of smoking.”