No Australia-P-NG
p. 23 · Read in the full issue
Customs Union —Yet Reprieve from Income Taxation?
A STATEMENT made by the Minister for Territories, Mr.
Hasluck, in Port Moresby on November 21 seems to dispose of the threat of direct income taxation on Territories residents—at least for the time being.
He said that, acting on the advice of a Committee which took evidence in Australia and the Territory at the beginning of the year, it had been directed that there would be no alteration in the present system whereby P-NG operates its own customs set-up as distinct from Australia’s.
Under the present system, in which Australia for export purposes treats P-NG as a separate country, there are the inevitable anomalies. The purpose of the committee was to see if customs-union between P-NG and Australia and subsequent abolition of the anomalies would be in the best interests of all concerned.
However, P-NG derives a great deal of its revenue from customs dues. If this revenue were lost it would have to be made up in another direction and income taxation seemed the obvious alternative. The great majority of Territories residents much prefer to keep the existing customs set-up with all its faults.
rather than get into the toils of the Australian - type income - taxation monster.
Mr. Hasluck suggested that the customs policy might be re-examined in three to five years time. He said the Committee had expressed opinions on Australian export duties as they affected the Territory, and the Commonwealth Government was now considering them.