The PNG Chamber of Resources & Energy (PNG CORE) commends the PNG Extractive Industries Transparency Initiative (PNGEITI) on the recent launch of the 2023 PNGEITI Annual Report.
This annual report represents a signpost for the resources sector and a milestone for the industry’s collective commitment to transparent, accountable, and responsible resource governance that serves all Papua New Guineans.
It also provides a detailed, data-driven view of payments flowing from the extractive sector to the State and state-owned enterprises (SOEs). These include taxes, royalties, dividends, and equity-related payments.
In 2023, the extractive sector contributed significantly to Papua New Guinea’s economy, accounting for:
- 27.4% of GDP
- 23.1% of direct government revenue
- 88.6% of total export earnings PNG CORE reaffirms its unwavering commitment to the principles of EITI: transparency, accountability, governance, and sustainable development. Transparent reporting builds trust, reduces conflict, enhances investor confidence, and strengthens the social license for member companies to operate.
The 2023 EITI Report underscores the importance of robust, consistent reporting to shed light on where resources come from, how they are allocated, and where gaps may exist- enabling policy makers, revenue authorities, and communities to make informed, evidence-based decisions.
Key payments and Contributions in 2023:
- K3.6 billion in Mining & Petroleum Taxes paid to IRC
- K843 million in Salary & Wages Taxes paid to IRC
- K1.67 billion in Equity Payments to State-Owned Enterprises
- K680 million in Royalty Payments to landowners, Local Level Governments, and
Provincial Governments - K564.5 million in Mandatory and Discretionary Social Contributions
- K366 million in Development levy to subnational governments
- K218million in Infrastructure Tax Credit
Transparency achieved through EITI reporting has been instrumental in identifying opportunities to improve tax administration, royalty flows, and the management of state equity interests.
PNG CORE remains open to collaboration with government, regulators, and communities to strengthen systems, close gaps, and ensure that taxation and revenue mechanisms serve the public interest without compromising the competitiveness and viability of the resource sector.
“We support ongoing EITI reporting cycles and independent assurance to maintain high standards of accuracy and accessibility. We encourage the use of EITI findings as constructive input into policy reform, ensuring that changes promote fairness, predictability, and sustainable development,” said Senior Vice President, Richard Kassman.
PNG CORE commends the PNGEITI for its continued leadership in promoting accessible and impactful disclosures, and for fostering a collaborative environment where industry, government, and civil society work together to translate resources into lasting development outcomes for Papua New Guinea.