Great news for consumers nationwide, there will be a Good and Services Tax (GST) Zero Rating of Essential Goods Effective on the 1st of June 2025 to 30th June 2026.
The Internal Revenue Commission (IRC) has put out a public notice informing the general public and the business community that, as part of the Government’s response to ongoing cost-of-living pressures, the following essential goods will be zero rated for Goods and Services Tax (GST) effective 1st June 2025 to 30th June 2026.
This means no GST shall be charged on the sale of the items listed.
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No.
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Item
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Description
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1
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Baby diapers
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All types of baby diapers
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|
2
|
Tinned fish
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Includes mackerel, tuna, sardines, salmon, anchovies, etc…
|
|
3
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Cooking oil
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All edible vegetable oils (soya bean, canola, olive, coconut, mustard oil etc…)
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4
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Biscuits
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All varieties including cream and salted biscuits
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5
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Wheat Flour
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Plain, self-raising, and whole meal (wheat-based only)
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|
6
|
Chicken
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Fresh, sliced, frozen, processed and packed
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|
7
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Instant Noodles
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All types packaged with seasoning (excluding pasta)
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8
|
Coffee
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Ground, powdered, or beans (excluding iced/hot coffee drinks)
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|
9
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Tinned Meat
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All varieties including beef (ox & Palm), chicken, pork (Tulip)
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|
10
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Rice
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Common rice types (including basmati, jasmine, long grain, brown rice etc…)
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|
11
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Sanitary Pads & Tampons
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All types
|
|
12
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Soap
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All solid bar soaps (excluding liquid hand wash and dishwashing liquids)
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|
13
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Tea
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All types and packaging (excluding iced/hot tea drinks)
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IRC Commission General Mr. Sam Koim stated that businesses, retailers and suppliers should be aware that the Government’s intention is to provide direct relief to consumers.
“All registered suppliers, retailers, and traders are legally required to adjust their pricing to reflect the zero-rating of GST on the listed goods. You must not charge GST on these items during the zero-rating period.
Any failure to pass on tax relief to consumers, whether by continuing to apply GST or by retaining prices at pre-zero-rating levels-will be treated as non-compliance with tax laws. Offenders will be subjected to penalties under the Goods and Services Tax Act 2003 and other relevant laws,” Commissioner Koim said.
Commissioner Koim said that compliance enforcement will be conducted by the IRC, in close partnership with the Independent Consumer and Competition Commission (ICCC) and PNG Customs Service.
“These agencies will monitor pricing behavior, investigate complaints and take appropriate enforcement actions. We call on all members of the business community to cooperate in good faith and support this important policy by ensuring that consumers fully benefit from the GST exemptions,” Mr. Koim added.