The Association of Superannuation Funds of Papua New Guinea (ASFPNG) has called on the Marape Government to rescind its recent decision to impose the K190 million banking levy. The decision to introduce the Market Concentration Levy as part of the Income Tax Act to collect K190 million per annum will affect Bank South Pacific (BSP), the largest bank in PNG and South Pacific, of whom superannuation funds on behalf of ordinary workers and taxpayers are major shareholders. The imposition of the banking levy will result in a decline in profitability, dividend payments to shareholders and a decline in BSP’s share price. This is a double blow for superannuation funds as annual crediting rates for members will be affected by lower revenues and portfolio balances. K190 million represents between 2% to 3% annual crediting rate for the major super funds, which have benefited from strong dividend payments and capital gains due to the strong performance of BSP over the years. “ASFPNG calls on the new Government of Prime Minister James Marape to rescind the decision of the previous National Executive Council (NEC) and withdraw the banking levy in the interests of all workers who are members of our superannuation funds. “BSP has instigated court proceedings that challenge the imposition of the banking levy and ASFPNG has applied to be an intervener in the case. As well, former Opposition Leader Belden Namah was recently granted a standing order by the Supreme Court to challenge the NEC decision. These court proceedings will cease if the banking levy is withdrawn. “We are cognizant of the Government’s endeavours to raise more revenue internally and will support initiatives that achieve their objectives but not at the expense of ordinary workers who are already doing it tough. We reiterate that any Government decision that lessens the prospect for growth and investment returns in not in the best interests of workers. “We again ask the Marape Government to rescind its previous decision and allow for wider consultation.”