Key Insights for the Private Sector

The Port Moresby Chamber of Commerce & Industry (POMCCI), in partnership with Deloitte, successfully hosted the PNG 2026 Budget Breakfast, attracting more than 200 representatives from across the business community. The event provided timely analysis of the national budget and its implications for private sector planning and investment.

POMCCI extends its appreciation to Deloitte Tax Partners Andrew Harris, Dr. Kishti Sen, and Megan Turlu, alongside panel contributors Paul Flanagan (Economist & Indo-Pacific Policy Analyst), Nancy Lelang (First Assistant Secretary, Department of Treasury), and Rajeev Sharma (CEO, Nasfund) for their valuable insights.

Tax & Policy Highlights

Presented by Andrew Harris – Deloitte

(Summary based on pages 3–6, Deloitte PNG Budget Presentation)

Deloitte provided a clear overview of the Income Tax Act 2025 and related policy updates shaping the Government’s fiscal approach for the coming year. Key takeaways included:

• Increase of the Infrastructure Tax Credit Scheme from 2% to 3%
• Continued zero rating of 13 essential items under GST until end of 2026
• Revised excise duties, including a diesel excise increase to K0.29 per litre
• Strengthened revenue projections across major tax categories, reflecting improved compliance and commodity trends

These reforms form part of the Government’s medium-term fiscal strategy and ongoing tax modernisation efforts.

Economic Outlook for 2026

Presented by Dr. Kishti Sen – ANZ Economist

(Summary based on pages 2–17, Economic Outlook Presentation

Economic Outlook_Deloitte Budge…)

Dr. Kishti Sen described 2026 as a transition year for PNG, marking the country’s final deficit before returning to a budget surplus in 2027. Key insights included:

• Nominal GDP expected to rise 9.2% to approximately K148.4bn
• Revenue estimated at K29.3bn, with expenditure at K30.9bn
• Public debt stabilising at K66.2bn (45.5% of GDP)
• Gradual strengthening of the kina expected from late 2026, backed by improved FX liquidity
• Major construction and resource projects slated to drive medium-term growth

While PNG has benefited from strong commodity prices, Dr. Sen noted the importance of increasing export volumes, strengthening infrastructure, and improving investment confidence to maintain the current growth momentum.

POMCCI’s Message to Members

The Chamber thanks Deloitte for facilitating this important dialogue and acknowledges the strong turnout from its membership. POMCCI remains committed to providing platforms that encourage informed engagement between the private sector and key policy stakeholders.

Members wishing to access the full presentations by Andrew Harris and Dr. Kishti Sen may contact the POMCCI office on 675 700 0000, or email frontdesk@pomcci.com | membership@pomcci.org.pg .