Inflation to triple in 2025

The Opposition cautions that in 2025, inflation or the cost of goods and services will triple, and the exchange rate will continue its downward spiral.

Shadow Treasurer James Nomane says this means the Government will pay 7 percent more to raise money for the 28-billion-kina budget.

Nomane highlighted in his budget response that those in rural areas will be greatly affected by inflation.

He added that the Kina facility rate which has gone from 3.1% to 4% will make borrowing and investment more difficult for the people including investors.

"PNG will remain vulnerable to external shocks and global market forces and the protracted cost of living continues," Nomane said.

Meantime, the Opposition, while commending the tax reforms introduced by the Government in the 2025 National budget, through the goods and services tax removal for 13 basic items, has instead recommended reduced tariffs.

Tariffs are taxes or duty to be paid on a good that’s being imported or exported.

Shadow Treasurer James Nomane in his budget response says a better approach would be to fast-track the tax system process and promote efficient tax collection.