Janice R. Andrews
A two-week state of emergency has been proclaimed in Papua New Guinea (PNG) in response to massive unrest that was brought on by a failure in the country’s payroll software. Multiple deaths occurred as a result of rioting caused by the inability to modify the payment system for government personnel.
The extended COVID-era tax cuts beyond 2024 were improperly implemented by the payroll system, which handles payments for government employees. This led to the catastrophe. The system went back to earlier, higher tax rates in the first pay run of 2024, which affected many government employees who were only getting half of their regular pay. As a result, they were taxed more heavily and received pay packets that were around $100 less than anticipated.
The disarray led to demonstrations and strikes by a number of employees, including the police, creating a security void that was promptly filled by unscrupulous individuals. Looting and rioting soon spread throughout the city.
After referring to the incident as a “technical glitch” at first, Prime Minister James Marape eventually announced a state of emergency. To reestablish order, military personnel have been stationed in the capital.
Internal Revenue Commissioner General Sam Koin expressed sadness “for the loss of lives and properties during these regrettable and avoidable incidents.”
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