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Digicel PNG files appeal with ICSID over new tax law

11 Jul 2022

Mobile network operator Digicel PNG has filed a proceeding with the International Centre for Settlement of Investment Disputes (ICSID) over the introduction of a new tax law by the Papua New Guinean government earlier this year.

As previously reported by CommsUpdate, in March 2022 Parliament approved an amendment to the Income Tax Act which introduced a new Additional Company Tax (‘ACT’) on the telecommunications and banking sectors. According to Digicel Group, this new levy imposed a one-off PGK350 million (USD97 million) on Digicel PNG, with a further penalty charge of PGK50 million for non-payment also payable.

Now, local press outlet Post Courier reports that Digicel PNG has filed a case with the ICSID, while it notes that the tax is also being challenged in Papua New Guinea’s Supreme Court by BSP Financial Group which has called on the court to declare the income tax law unconstitutional.

Papua New Guinea, Digicel PNG

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