The value of log exports declared by logging companies is 50% lower than the value of the same logs declared in China by importing companies.

Between 2018 and 2022 the difference in value was equivalent to over K6 billion today.

By undervaluing the log exports, companies avoid paying export taxes to the government and royalties to local communities as they don’t declare any profits.

Internal Revenue Commissioner Sam Koim has said logging companies are guilty of “an entrenched level of tax evasion” with “egregious incidents of transfer pricing and underdeclaration of income”.

Act Now is calling on Mr Marape to order a full and transparent public inquiry into log pricing discrepancies.

The amounts of money involved are eye watering and the losses to the PNG government and rural communities have been incurred for decades. It is time the prime minister ensured action is taken.

ACT NOW is also calling for immediate action by regulatory agencies, the commercial sector and diplomatic community, including:

There is extensive and well-documented evidence that logging companies are involved in illegal logging including the abuse of Forest Clearing Authorities, tax evasion and fraud, money laundering and human rights abuses.

These same problems have plagued our nation since Independence.

Read the full UNODC findings: https://actnowpng.org/blog/blog-entry-unodc-report-reveals-us15-billion-hole-png’s-log-export-income

Read Sam Koim’s 2021 statement: https://actnowpng.org/blog/blog-entry-irc-adds-more-financial-crimes-logging-companies’-charge-sheet