Papua New Guinea’s revenue performance has recorded a significant turnaround over the past seven years, with new data highlighting a sharp increase in tax collections despite no major new resource projects coming on stream during that period.
Prime Minister James Marape in a statement revealed that in 2018, the country collected K9.7 billion in total tax revenue, with mining and petroleum contributing just K775 million, even though major projects such as the Porgera Mine and PNG LNG were operating at full capacity under existing agreements.
Related news: https://www.onepng.com/2026/03/png-economy-growing-despite-delays-in.html
He said the figures underscore how limited returns were under previous arrangements, noting that despite strong production levels across the resource sector at the time, government earnings remained relatively low.
However, by 2025, total tax revenue has surged to K17.064 billion-almost double the 2018 figure-while revenue from mining and petroleum alone has climbed sharply to K4.137 billion.
PM Marape said this growth reflects improved revenue collection, stronger compliance, and a more strategic approach to managing the country’s resource wealth.
Prime Minister Marape said the latest verified figures demonstrate a near doubling of tax revenue since 2018, the final full budget year before his government took office.
“In 2018, Papua New Guinea collected a total tax revenue of K9.7 billion. Of this, mining and petroleum taxes contributed only K775 million,” Prime Minister Marape said.
“This was at a time when the old Porgera Mine was still operating under previous agreements, PNG LNG was already in production, and all major resource projects were active.
Yet, despite these projects running at full capacity, revenue remained at that level.
“By 2025, total tax revenue has increased significantly to K17.064 billion—almost double. Importantly, mining and petroleum tax alone has risen to K4.137 billion.
“This clearly shows that our economy is growing, our revenue base is expanding, and our efforts to improve compliance and governance are delivering real results.”
Prime Minister Marape further highlighted that total government revenue, including grants and other income streams, has also expanded substantially.
“In 2018, total budget revenue stood at around K14 billion. By 2025, this has grown to approximately K25 billion,” he said.
“This is a clear indication that our national economy is not in decline. It is growing, and it is becoming stronger.”
The Prime Minister emphasized that this growth has been achieved even before the commencement of major new resource projects such as Papua LNG and Wafi-Golpu.
“Even without Papua LNG and Wafi-Golpu coming into operation, we have grown internal tax revenue from K9.7 billion to over K17 billion,” he said.
“This demonstrates that our strategy to diversify the economy—focusing on agriculture, construction, and other sectors—is working.”
He added that the Government has strengthened tax compliance to ensure all businesses operating in the country meet their obligations.
“We are tightening compliance and ensuring that everyone who should pay tax is paying tax. This is part of building a fair and responsible economy.”
Prime Minister Marape made it clear that while the Government remains committed to progressing Papua LNG and Wafi-Golpu, it will not rush into agreements that undervalue the country’s resources.
“We want these projects to proceed, but not at the expense of our national interest,” he said.
“We are not asking for anything beyond the law. We are simply insisting on what Papua New Guinea is entitled to under existing legislation.”
The Prime Minister said the Government is negotiating for a fair long-term share of benefits consistent with Pangu Pati policy.
“I want agreements that ensure Papua New Guinea secures around 55 percent of the benefits over the life of these projects,” he said.
“These agreements will bind future governments, so we must get them right.”
He warned that if investors are unable or unwilling to proceed under fair and lawful terms, the Government is prepared to act.
“If investors cannot deliver under these terms, they are free to step aside. Papua New Guinea will find new partners.
“And if necessary, we will strengthen our laws to ensure our national interests are fully protected.”
Prime Minister Marape reassured landowners and provincial governments in Gulf and Morobe that the Government remains committed to honoring all obligations, including Infrastructure Development Grants and Business Development Grants.
“We will continue to work closely with landowners and provincial governments as we conclude discussions with project developers,” he said.
“Our people must benefit fairly from the resources on their land.”
Prime Minister Marape pointed to strong performance across the domestic economy, including in the financial sector, as further evidence of resilience and growth.
“Our banks, superannuation funds, and local businesses are performing strongly. This growth is not dependent on new LNG or mining projects—it is being driven from within our economy,” he said.
“When we took office in 2019, we made a deliberate decision to grow agriculture, fisheries, and other sectors, not just rely on mining and petroleum. That strategy is working.”
Prime Minister Marape issued a strong message of assurance to the nation.
“Papua New Guinea is not in crisis. The country is not dying. The country is growing,” he said.
“We will continue to grow the economy, expand revenue, and invest in education, health, infrastructure, and law and order.
Related news: https://www.thepngsun.com/pm-marape-tells-business-leaders-k200-billion-economy-sight-as-major-projects-near-rollout/
“At the same time, we will ensure that every agreement we sign delivers a fair and lasting return for our people.”