Identifies common practices used in selling in this market, including sales material that needs to be in the local language.
Papua New Guinea’s local language, Tok Pisin, is widely spoken and understood across the country. Labelling products in Tok Pisin is advantageous.
Trade Promotion and Advertising
Both the rural and urban population in PNG receive information through radio, television and more recently through social media channels like Facebook.
The Investment Promotion Authority of PNG (IPA PNG) provides a comprehensive guide on investing in the country and hosts annual export promotion fairs. Local fairs or trade shows are not scheduled events and depend on relevant appropriate authorities. A list of promotion and advertising agencies can be found from the list below:
- PNG Business News
- Investment Promotion Authority PNG
- The National Newspaper
- Post Courier
- PNG Business Advantage
Goods & Services Tax
A Goods and Services Tax (GST) is imposed on the sale of goods and services in Papua New Guinea or the importation of goods into Papua New Guinea. GST is imposed at a rate of 10% of the value of the goods and services sold (or goods imported).
Three Steps to Understanding GST
Step 1) A GST registered business (e.g., a retailer) purchasing goods and services for the business will pay the supplier of those goods a GST of 10% (if the supplier is registered for GST). The supplier will issue a Tax Invoice.
Step 2) The purchaser adds his mark-up (profit) to those goods. Because GST paid on the purchase of goods can be claimed back as a credit, the selling price of a product is based on the GST exclusive price paid for that product.
Step 3) When the final selling price has been worked out, a GST of 10% will be added to that figure.
Businesses which sell goods or services collect GST and pay it to the Internal Revenue Commission less the credit on the GST the business was charged on purchasing its supplies. This is done using a monthly GST return.
GST is not like Income Tax or Salary and Wages tax, where tax is calculated on earnings. GST is a consumption tax that is added to the selling price (including profit) of goods and services. Further information on GST can be found PNG Internal Revenue Commission following this link: https://irc.gov.pg/tax-information/goods-services-tax/
Sales Service/Customer Support
Customer sales and support is widely available through service counters, call centers, and online channels.
Local Professional Services
Manufacturers Council of PNG
PNG Chamber of Commerce and Industry
PNG Chamber of Mines and Petroleum
Principal Business Associations
Below are references to the principal business associations:
- Business Council of Papua New Guinea Business
- Lae Chamber of Commerce and Industry
- Manufacturers Council of PNG
- PNG Chamber of Commerce and Industry
- PNG Chamber of Mines and Petroleum
Limitations on Selling U.S. Products and Services
The Regulations of the Investment Promotion Act 1992 as amended contain a list of business activities which are restricted to citizens and or national enterprises. Refer to link for PNG’s Cottage Business Activities List: https://www.ipa.gov.pg/wp-content/uploads/Info-Pack-Guide.pdf.