A new tax announced in last week's Papua New Guinea 2022 Budget has sparked widespread controversy.

A banking tax levy has been directed at the Bank South Pacific and a communications levy at phone provider, Digicel.

Professor of economics at the Australian National University, Stephen Howes, said both businesses are considered near monopolies.

"The government in this Budget has taken the radical step in having a tax that is specifically directed at those two companies. You can argue the case both ways.

Professor Howes said the government has indicated the levy will not apply until the latter part of next year, so putting implementation off until after the election.

The super fund, Nambawan Super, said its 200,000 members can expect to lose up to $US6.38 million dollars in dividends from its 12 percent stake in Bank South Pacific.

The BSP has also been at pains to point out that it is providing a nationwide banking service without any government support.