PNGX, Papua New Guinea’s national stock exchange, is pleased to announce that following an extended period of representations by PNGX on behalf of industry and investors, the PNG Securities Commission has agreed to substantially reduce the quantum of its share trading levies first introduced in February 2021. In a positive move for the PNG capital market, the Securities Commission has reduced the levies to 0.03% on each buy and sell transaction.
The new levies, which will take effect on Tuesday 23 November 2021, brings PNG in line with other developing markets and removes a potentially damaging barrier to the development of PNGs capital markets. At the same time the revised levies will bring a much needed contribution to the nation’s Capital Market Development Fund.
All monies raised from the levies will now be paid into the Capital Market Development Fund which is established under the Capital Market Act1 with the objectives of:
(a) the promotion of the capital market within Papua New Guinea to be an efficient, innovative and internationally competitive market; and
(b) the development and upgrading of skills and expertise required by the capital market in Papua New Guinea; and
(c) the development of self regulation by professional associations and market bodies in the securities industry; and
(d) the development and support of high quality research and development programmes and projects relating to the capital market in Papua New Guinea.
“The Securities Commission is to be commended for these changes” said PNGX Chairman, Mr David Lawrence. “Not only has the Securities Commission responded to concerns about the negative impact the previous levies were having on the market, but it has demonstrated foresight and a commitment to developing the markets through the Capital Market Development Fund along with transparency by requiring disclosure of the levy by stockbrokers to their clients, both of which are positive for Papua New Guinea” he said.
The Securities Commision has withdrawn the previous levies which had been set at 0.75% on each buy and sell transaction and instructed that all monies collected under the previous levies be returned to investors2.
A copy of the Gazette regarding the new Levies is attached.
1 Refer section 428 of the Capital Market Act 2015.
2 Refer National Gzette G649 of 2021
