Customs & Excise Stop Levies on Coal Exports
Thursday, 14 September, 2006 | 17:31 WIB
TEMPO Interactive, Jakarta: The government has stopped imposing levies on coal exports as of 13 September 2006.
This policy was stipulated in a circular letter from Anwar Suprijadi, the Director General of Customs & Excise, to all Office Heads of Regions One to Eight of the Customs & Excise Directorate General and Office Heads of Customs & Excise Services in Indonesia.
According to Anwar, this is follow-up to the Finance Ministerial Decree on 13 September 2006 concerning Coal Export Levies.
Previously, Erwin Silitonga, Director of Tax Counselling at the Directorate General of Taxes, said that coal is not a taxed good yet.
The Directorate of Customs & Excise has imposed levies when entrepreneurs export coal.
Entrepreneurs feel that this policy has caused them financial losses.
After the levies are stopped, according to Erwin, the government will impose value-added tax (PPN) on coal amounting to as much as 10 percent at the beginning of next year.
He has said that this policy will lighten the burden of mining entrepreneurs.
“This is so that taxes collected from entrepreneurs can be included in the back pay tax mechanism,” said Erwin.
He promised that should the PPN be imposed, there will not be any export levies.
Up to now, the Directorate General of Taxes has not imposed PPN on coal because the Governmental Regulation Number 144/2000 states that before coal is processed into briquettes, PPN will not be imposed.