Papua New Guinea - Country Commercial Guide
Selling Factors and Techniques
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Given PNG’s rich cultural and lingual diversity, the use of visual aids and markings reflecting local content such as iconic landmarks, main sources of livelihoods, and community symbols resonate well with customers.  The advertising and labelling style can vary according to the four regional groupings in the country.  These are the populous Highlands region, the New Guinea Island provinces, the mainland Mamose cultural grouping, and the Southern region, which share a common trade language of Motu.

PNG’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 appropriate authorities’ approval. and coordination.  See list of advertising agencies below:

Pricing

Goods & Services Tax

A Goods and Services Tax (GST) is imposed on the sale of goods and services in PNG or the importation of goods into PNG.  GST is imposed at a rate of 10 percent 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 percent (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 percent 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 at PNG Internal Revenue Commission

Sales Service/Customer Support

Customer sales and support are widely available through service counters, call centers, and online.

Local Professional Services

Manufacturers Council of PNG

Email: info@pngmade.com

PNG Chamber of Commerce and Industry

Email: pngcci@global.net.pg

 

PNG Chamber of Mines and Petroleum

Website: https://pngcore.org/

 

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 PNG IPA for PNG’s Cottage Business Activities List: