Companies refuse to pay tax

Companies refuse to pay tax

TANGERANG: Three big companies had thus far refused to pay
taxes for public street lighting, complained Nanang Hernawan,
head of the Tangerang municipal original revenue.

The three companies -- garment manufacturers PT Argo Pantes
and PT Tifico and fiber producer PT Indonesia Toray Syntetis --
claimed they did not consume electricity supplied by state-owned
electricity company PT PLN but produced electricity with their
own generators for internal uses.

Nanang estimated the amount of the unpaid taxes reached up to
Rp 500 million (US$53,764).

Bylaw No. 10/1999 on public street lighting tax stipulates
that any company that uses their own generators to produce
electricity for its own use must still pay a tax of Rp 140 per
kilowatt hour.

Nanang said last week should the companies continue to refuse
to pay the tax, the manager might face a maximum punishment of
one-year imprisonment as stipulated in the bylaw and pay a fine
of twice that of the tax.

PT Argo Pantes spokeswoman, Endang Martini, confirmed that the
company objected to the tax.

"We had paid taxes of Rp 22 million in January for the street
lights but since February to today no official from the municipal
office has come to collect the tax," she said.

PT Indonesia Toray Syntetis staff Wiwiek Ardianti refused to
comment. -- JP