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