, simplifying the system. the tax base for irap can now be drawn directly from the company ’ s income statement without the adjustments required for business income, independently of the rules followed in drawing up the accounts ( italian civil code or international accounting standards ). this produces not only a simplification of formalities but also greater certainty for firms, by reducing the scope for possible disputes. the restructuring of irap is accompanied by the diminution of some tax credits ( those for small enterprises and the fixed - amount credit in connection with labour costs ) ; and as for ires, accelerated depreciation is no longer allowed. for banks and insurance companies the tax base will include 50 per cent of dividends. sole proprietorships and partnerships will be able to opt, in place of personal income tax, for separate taxation of retained earnings, at the same rate as corporate income tax. for self - employed workers and small enterprises with revenues of less than €30, 000 a substitute tax regime is introduced with a tax rate of 20 per cent, exemption from vat and irap, and documentation and accounting simplifications. in addition to the revenue requirement, eligibility for this regime also requires that the taxpayer not have made export sales, not have had any employees during the year, and not have purchased capital goods worth more than €15, 000 in the last three years. at present self - employed workers and small enterprises can opt for one of four different, favourable tax regimes, if they comply with a specific set of requirements ( involving amount of revenues, start - up of new business, inclusion within sector studies ). of these regimes, the only one that will remain is that for persons who start up new professional or business activities, and only for the tax year in which the business is started up and the following two. finally, some sectoral tax reliefs are extended to 2008, reducing estimated revenue by €0. 7 billion. 4. some evaluations the government has said on more than one occasion that the crucial challenge of italy ’ s public finances consists in simultaneously bringing down the debt ratio and reducing the fiscal burden on honest taxpayers. to achieve these objectives it is necessary to curb primary current expenditure, which in the past few years has grown at a real rate of between 2 and 2. 5 per cent a year, and to “ spend better ” by improving the effectiveness and efficiency of public - sector operations. recent fiscal policy decisions do not brake the growth in expenditure. the

have already contributed, go and demand your money back. we must all act together to stop the spread of this illegal and evil activity. 9. conclusion to conclude, the government and the bank of png has put in place appropriate policies, which have led to improvements in our macroeconomic performance. all of us, the business community and development partners must now build on these achievements to ensure that the gains are passed on to everyone. with one more bank now established in kimbe, this will increase access to banking and financial services for a wider section of our communities. money should circulate easily within this province and outside. with money circulation increasing, the bank of png has introduced a clean banknote policy to ensure our currency maintains its quality, standards, and security. i ask you all to return any soiled and damaged banknotes to the banks to be returned for destruction so that new ones can be issued. do not continue to use old banknotes. the people of west new britain province now have three banks in operation. this is a clear sign of the confidence the banking sector has in the people and the local economy here. you must use the banks and other licensed financial institutions to conduct your financial transactions. they are safe because the bank of png keeps an oversight on them. look after your banks and financial institutions. safeguard them and support them. they provide an important service in the community. banks and other businesses have closed down branches in many provinces due to criminal activities, vandalism and mismanagement. let us ensure that this will not happen in kimbe and the west new britain province. i again urge you all not to lose your money in illegal, unlicensed and fraudulent money schemes. do not invest in fms. you are sure to lose your money that you worked hard to earn and will never get it back. always know that the fms will disappear or die when you stop giving them your money in return for financial promises of billions of kina that will never come. the economic conditions are conducive and future prospects continue to look positive for png. therefore, work on your oil palm, cocoa and coconut blocks, your fishing and forestry projects, and other economic activities. then put your financial gains in the banks and financial institutions that are licensed and supervised by the central bank, where they are safe ; not in money schemes. on behalf of the board and management of the bank of png, i would like to congratulate an