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Indonesian coal miners suggest output quota opposing export tax

Steel News - Published on Thu, 17 May 2012

The Jakarta Post reported that Indonesian coal miners have suggested that the government apply a production quota instead of implementing an export tax in order to prevent over exploitation.

Mr Supriatna Suhala ED of the Indonesian Coal Mining Association APBI said that a production quota for each company would be more acceptable than the export tax since coal miners currently paid different levels of tax to the government.

He said “For the first generation contracts of work [known as PKP2B], the royalty is 30% plus corporate tax at 45%, while for mining permits [IUP], issued after 2009, the royalty is only between 13.5% with 25% corporate tax,.”

He said “If the government applies the export tax, the first generation contract holders will be heavily burdened, they may also bring the regulation to arbitration. The export tax is a good idea as long as all companies are on a level playing field.”

Mr Supriatna urged that the government had to study the plan very carefully.

The association had sent a letter to the Finance Ministry’s fiscal agency to explain the situation faced by coal mining companies.

Source - The Jakarta Post

(www.steelguru.com)

Posted By : admin on Thu, 17 May 2012
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