Minister for Treasury, Ian Ling-Stuckey, has today commended the Papua New Guinea Customs Service (PNGCS) for its effective compliance and enforcement actions that continue to protect Government revenue and strengthen the nation's economy.
The Treasurer said recent enforcement activities, that include the detection of significant non-compliance and unlawful production of excisable products, demonstrate the important role PNG Customs plays in safeguarding public finances and ensuring a fair and lawful business environment.
"A strong economy depends on strong institutions," The Treasurer stated. "PNG Customs' professionalism in detecting excise non-compliance sends a clear message that illegal activities which deprive the State of revenue will not be tolerated."
The Treasurer was referring to a recent Customs enforcement operation which identified large quantities of undeclared alcoholic products (a total of 26,237 cartons and 616 loose bottles) that were illegally removed from a licensed manufacturing facility and stored at an unlicensed location in Port Moresby.
As a result of this investigation, Customs has issued a demand notice totalling over K19.05 million in excise duty owed to the State under the Excise Act 1956.
Minister Ling-Stuckey said excise revenues are a critical component of domestic revenue and play a key role in funding essential services, including health, education, law and order, and infrastructure development. Excise collections have risen from K1,157 million in 2022 to an estimated K1,467 million in the 2026 Budget. Obtaining these increases requires working well with honest taxpayers, and cracking down on the crooks. Effective enforcement against illicit tobacco and alcohol is central to sustaining this progress."
The Treasurer noted that compliance enforcement not only supports revenue growth but also protects legitimate businesses that follow the law.
"When companies attempt to evade excise obligations, it creates an uneven playing field," Mr Ling-Stuckey said. "PNG Customs' actions protect honest manufacturers and importers who meet their tax responsibilities."
Mr Ling-Stuckey commended the Chief Commissioner of Customs David Towe, his management team and all Customs officers for their continued diligence and commitment towards facilitating trade, collecting revenue and protecting PNG's border.
"I commend the leadership and officers of PNG Customs for maintaining a strong compliance culture," he said. "I encourage them to continue this firm enforcement approach to ensure revenue growth is sustained into the future. Tax-paying firms will be treated with respect. Those that try and get around the law will be punished."
"Sound revenue administration is critical to achieving macroeconomic stability," Mr Ling-Stuckey said. Across our tax collection agencies, and wider revenue collections such as dividends from the Kumuls, and revenues from other agencies such as fisheries and lands, record levels of revenues are being collected without new taxes. The level of domestic revenue collection in 2026 is expected to be 18.8 per cent of GDP, already exceeding the target of 17.9 per cent set for 2027 in the Medium-Term Revenue Strategy.
The Treasurer reaffirmed the Government's commitment to fully supporting Customs and other revenue agencies through policy reform, legislative strengthening and investment in compliance capability.
"The National Government will continue to work closely with PNG Customs to ensure our tax laws are enforced fairly, transparently and consistently, for the benefit of all Papua New Guineans."
Authorized by
David Towe
Chief Commissioner of Customs