The National Government’s proposal in its 2025 National Budget to reduce the Corporate Tax Rate has been well received by Kina Bank. This is because Kina Bank feels encouraged by the proposal to reduce the Corporate Tax Rate for commercial banks from 45% to 40% commencing 1st January 2025, and from 40% to 35% from 1st January 2026. Kina Bank Managing Director and Chief Executive Officer (CEO), Mr. Greg Pawson, while thanking the Government and Prime Minister James Marape regarding the proposed changes, said: “We are encouraged that the Government is working to revise the increased 45% tax rate that was introduced on 1st January 2023. This proposed change will enable banks to allocate more capital for investment and business growth, thus supporting the Government’s growth agenda.” Then Government made this announcement when handing down the country’s 2025 National Budget on Friday 29th November at the Parliament House in Port Moresby city. The proposed changes apply to banks with annual earnings up to K300 million. For banks earning more than K300 million annually, the tax rate will reduce from 45% to 44% for 2025, and then by a further 1% in each successive financial year until the rate is 35%. In 2023, the PNG Government imposed a 15% increase in the Corporate Tax Rate from 30% to 45% for commercial banks.