Incentives for manufacturers

Welcome,

The Papua New Guinea Government offers a number of incentives to help develop the local manufacturing sector.

For example:

Credit: Nestlé

Credit: Nestlé

  • Industrial plants not previously used in PNG are eligible for increased depreciation up to 100% of cost.
  • The initial year accelerated depreciation allows faster writing down of the capital cost of certain new assets.
  • Double-deduction for export market development costs for goods made in PNG, or where PNG labour cost exceeds 10% of the sale price of the product.
  • Profit made from export sales of certain PNG-made goods qualify for company income tax exemptions for the first three years. A different formula applies for exemptions for the next four years.
  • A duty drawback rebate paid to exporting manufacturers when they export goods of the same value as the amount of duty already paid on the raw material.
  • Companies manufacturing new products may receive a subsidy payment of 10-40% for up to five years based on a percentage of the relevant minimum wage for each full-time local employee.

Source: PNG Investment Promotion Authority

First published in Made in PNG 2012

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Comments

  1. Markus Jungen says

    Good information on incentives for manufacturing industry. I need some detailed information on the incentives. Would you be able to email me anything?

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