The recent announcement by the Papua New Guinea (PNG) government to increase corporate tax for commercial banks to 45% has drawn criticism from the country’s financial sector. Ronesh Dayal, the acting CEO of Bank South Pacific (BSP), warned that the tax increase would penalize growth in the financial sector. Dayal explained that the tax rate only applies to commercial banks, while all other companies in the country will still maintain a 30% tax rate. He urged the government to promote a stable taxation and regulatory regime to encourage investment in the country by local and international companies. Kina Bank’s CEO, Greg Pawson, echoed Dayal’s sentiments, stating that the tax increase was disappointing, as it targets a sector of the market that is critical for supporting PNG’s economic growth aspirations. Pawson expressed concern that the tax increase would impact the ability of challenger brands in PNG to continue an aggressive and inclusive growth agenda. He also stated that key elem