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Excise

Excise is generally an Inland Revenue or local tax levied or charged on certain goods/products legally described or declared as Excisable Products.

Excisable products that attract Excise duties are Beer, Tobacco Products, Spirituous Liquors, Wine Products and Petroleum Products, manufactured or further manufactured in Papua New Guinea or imported.

The Commissioner of Customs has the powers to Administer and control the manufacture of excisable products and the collection of excise duties within the meaning of the Excise Act.

All manufacturers of excisable goods must be registered with PNG Customs and pay a license to operate such facilities. This license is renewable every year on or by the 10th working day of the year. In addition to license, Customs requires a security for the excise duty in the form of a Bank Guarantee, an amount determined by the Commissioner of Customs.

Excise Operations

Excisable Tax/Rates

The rates on locally produced excisable goods are adjusted or increased at 2.5% or the CPI movement expressed in percentage, whichever is the lesser every six months. These new rates would apply on 1st June and 1st December every year. The excise Tariff Act is amended every year during budget sessions to reflect the new rates for the fiscal year. Current rates can be found in schedule 1 of the Excise Tariff Act.

Lodgment of Goods Declarations- Local Excise Declaration.

Local Excise Declarations must be lodged within 5 clear working days after sales or delivery of the goods. A 8% Penalty Interest is imposed for late lodgments.

Weekly Excise Duty Payments

Excise Regulation 82 stipulates that all payments of Excise duty on locally manufactured excisable products must be made weekly, no later than 5th working day of the week, succeeding any working week, being from Monday to Saturday in which any sales of such products was made.

Excise duties must be paid within 5 clear working days of assessment notice being issued, if not paid with 5 days a late payment penalty interest of 8% applied for 5 days or part thereof.