Prime Minister, James Marape has commended Lihir Gold Limited for its substantial tax contribution to the National Government, describing it as a strong reflection of improving compliance in Papua New Guinea’s resource sector amid high global gold prices.
The Prime Minister confirmed that Lihir Gold Limited-operated by Newmont Corporation-has paid more than K805 million in its first corporate tax instalment for 2026.
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“I have been one of the strongest critics in the past when it comes to ensuring our resource sector pays its fair share, especially during periods of high commodity prices,” Prime Minister Marape said in a statement last night.
“I now commend Lihir Gold for paying its taxes on time and at a level that reflects both the current international gold prices and its production performance.”
He noted that Lihir remains one of Papua New Guinea’s largest gold mining operations and a major contributor to government revenue through taxes, royalties, and employment.
Prime Minister Marape also acknowledged the strong performance of revenue collection agencies, noting that the Internal Revenue Commission is currently tracking at 110 per cent of its year-to-date revenue forecast, while the PNG Customs Service is also performing above expectations.
“As of the end of April, our revenue collections are exceeding forecasts. This shows improved compliance across the economy and stronger enforcement by our institutions,” he said.
The Prime Minister further pointed to recent enforcement actions by Customs authorities, including the confiscation of illegal alcohol products from a major distributor, as evidence that regulatory agencies are actively upholding the law.
“This action sends a clear message that no individual or business is above the law. Our enforcement agencies are working to ensure that everyone operates within the legal framework,” he said.
“Let this be a reminder to all—do not engage in illegal activities. When you do the right thing and operate within the law, you are safe, and together we build a safer nation for everyone.”
The Prime Minister commended both agencies for their continued efforts in addressing tax leakages and illegal economic activities.
“We are clamping down on illegal operators and black-market activities. There must be no room for those who operate outside the law. Everyone must pay their fair share of tax,” he said.
Highlighting the broader fiscal trend, Prime Minister Marape said government revenue has grown significantly in recent years despite tax relief measures aimed at supporting citizens.
“When we took over Government in 2019, our revenue was under K14 billion. By 2025, we had surpassed K26 billion. Even with all the tax relief we have given our people, revenue has continued to increase,” he said.
Despite the improved revenue performance, Prime Minister Marape cautioned that 2026 remains a challenging fiscal year, as the Government continues to manage inflationary pressures while supporting citizens.
He highlighted key interventions, including fuel price stabilisation, removal of GST on essential goods, and tax relief for low-income earners.
“Increased revenues from mining, oil and gas are helping us cushion the impact of global price pressures and support our people during difficult times,” he said.
The Prime Minister also issued a strong directive to public officials across all levels of government to exercise discipline in the use of public funds.
“To all provincial administrators, department heads, and district chief executive officers—do not abuse public funds. Use them strictly for their intended purposes as outlined in the national budget and always operate within the law,” he said.
Looking ahead, Prime Minister Marape reiterated his Government’s long-term vision of reducing corporate tax rates as the economy expands.
“If our economy grows beyond K200 billion and revenue continues to strengthen, we will move towards lowering corporate tax to allow businesses to reinvest and grow the economy,” he said.
Prime Minister Marape concluded by thanking all compliant taxpayers across the country.
“Our consistent revenue performance over recent years shows that our long-term economic plan is working.
Together, we are making progress—even in tough times,” he said.