Revenue Statistics in Asia and the Pacific 2021 ─ Papua New Guinea

Tax-to-GDP ratio

Tax-to-GDP ratio compared to other Asian and Pacific economies and regional averages, 2019 Papua New Guinea's tax-to-GDP ratio was 12.4% in 2019, below the Asia and Pacific (24) average of 21.0% by 8.6 percentage points. It was also below the OECD average (33.8%) by 21.4 percentage points.

% #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A 50 45 48.2 40 35 33.8 30 32.3 32.0 25 28.7 27.4 26.8 25.7 24.2 20 22.9 22.2 22.1 21.0 20.4 15 19.2 18.6 18.0 17.4 17.2 17.1 16.7 16.6 10 13.3 12.4 12.4 11.6 10.5 10.3 5 0

* Data for 2018 are used for the Africa (30) average, Australia and Japan as 2019 data are not available.

Tax-to-GDP ratio over time The tax-to-GDP ratio in Papua New Guinea decreased by 0.2 percentage points from 12.6% in 2018 to 12.4% in 2019. From 2007 to 2019, the tax-to-GDP ratio in Papua New Guinea decreased by 8.3 percentage points from 20.8% to 12.4%. The highest tax-to-GDP ratio in this period was 20.8% in 2007, and the lowest 12.4% in 2017 and 2019. Range Asia and Pacific Papua New Guinea % 50 45 40 35 30 25 2020.8 15 12.4 10 5 0

In the OECD classification the term “taxes” is confined to compulsory unrequited payments to general government. Taxes are unrequited in the sense that benefits provided by government to taxpayers are not normally in proportion to their payments. http://www.oecd.org/tax/tax-policy/oecd-classification-taxes-interpretative-guide.pdf Regional averages (OECD, LAC, Africa (30)) refer to the 2021 edition for Revenue Statistics in Latin America and the Caribbean, and to the 2020 editions of the Revenue Statistics (OECD), and Revenue Statistics in Africa. oe.cd/global-rev-stats-database

With financial support from the governments of Ireland, Japan, Luxembourg, Norway, Sweden, Switzerland and the United Kingdom Tax structures

Tax structure compared to the regional averages Tax structure refers to the share of each tax in total tax revenues. The highest share of tax revenues in Papua New Guinea in 2019 was derived from personal income tax (30.5%). The second-highest share of tax revenues in 2019 was derived from corporate income tax (27.0%). Personal income tax Corporate income tax Social security contributions Other taxes on goods and services Value added taxes / Goods and services tax Other taxes Papua New Guinea 31 27 23 19 0

Asia-Pacific (24) 17 20 7 27 23 7

Africa (30)* 17 19 7 22 30 4

LAC 9 16 17 22 28 8

OECD* 24 10 26 12 20 8

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

* Data for 2018 are used for the OECD and Africa (30) average as 2019 data are not available. All figures within the chart are rounded.

Tax Revenues in Tax structure in Summary of the tax structure in Papua New Guinea national currency Papua New Guinea Papua New Guinean Kina, Millions % in GDP

2019 2018  2019 2018  Taxes on income, profits and capital gains 6 055 6 119 - 64 7.2 7.7 - 0.5 of which Personal income, profits and gains 3 212 3 102 + 110 3.8 3.9 - 0.1 Corporate income and gains 2 843 3 017 - 174 3.4 3.8 - 0.4 Social security contributions ------Taxes on goods and services 4 414 3 755 + 659 5.2 4.7 + 0.5 of which Value added taxes / Goods and services tax 1 973 1 622 + 351 2.3 2.0 + 0.3 Taxes on specific goods and services 2 424 2 113 + 311 2.9 2.7 + 0.2 of which Excises 1 361 1 168 + 193 1.6 1.5 + 0.1 Customs and import duties 409 325 + 84 0.5 0.4 + 0.1 Other taxes 49 109 - 60 0.1 0.1 - TOTAL 10 518 9 983 + 535 12.4 12.6 - 0.2

Tax revenue includes net receipts for all levels of government; figures in the table may not sum to the total indicated due to rounding.

In this country note, “other taxes” is calculated as total tax minus taxes on income, profits and capital gains, social security contributions and taxes on goods and services. It includes taxes on payroll and workforce, taxes on property and other taxes (as defined in the OECD Interpretative Guide).

For further information, please see: oe.cd/revenue-statistics-in-asia-and-pacific

With financial support from the governments of Ireland, Japan, Luxembourg, Norway, Sweden, Switzerland and the United Kingdom