Fishermen cancel tax protest

Fishermen cancel tax protest

Agus Maryono, The Jakarta Post, Purwokerto

Thousands of fishermen from Central Java canceled their plan to
storm Jakarta on Wednesday in protest over the newly decreed
fishing taxes, after Minister of Maritime Affairs and Fisheries
Rohimin Dahuri heeded some of their demands.

The fishermen from many parts of Central Java were planning to
stage a massive demonstration at Dahuri's office in Jakarta on
April 10.

They demanded that the minister revoke the two new taxes,
namely the fishing vessel tax (PPP) and the fishing income tax
(PHP) which came into effect last November.

In their planned protest, the fishermen were to demand the
government at least reduce the PHP tax to 1 percent of their
fishing income, and allow them to pay the PPP tax in
installments, that is, if their demand for the total revocation
of the new decree went unheeded.

The new taxes were introduced under a decree issued by the
ministry, in addition to the five percent levy on sales that
fishermen are already obliged to pay.

Under the new decree, fishermen must pay the PHP tax which
amounts to 2.5 percent of their fishing income every time they
return to port. Meanwhile, the PPP tax is collected every year
and is calculated according to the weight of a fishing vessel.
For example, a 30-ton boat is charged Rp 3 million in PPP tax.

However, Dahuri last week accepted the protesters' demand by
reducing the PHP tax from 2.5 percent to one percent. The
approval was conveyed when the minister met leaders of the
Indonesian Fishermen's Association (HNSI).

Under the new agreement, the owners of wooden fishing boats
must pay one percent of their income in PHP tax, while those with
iron or steel vessels will continue to be charged 2.5 percent.

"This has prompted the fishermen to cancel the protest in
Jakarta," said Basari Hambali, chairman of HNSI's Pekalongan
branch.

However, the mechanism of the two tax collections was being
discussed by the Ministry of Maritime Affairs and Fisheries and
the HNSI as well as related agencies in Jakarta.

Bazari said his association wanted the collections of the PHP
tax conducted after every sale deal at ports, while the PPP tax
should be paid each year in installments.

The protesting fishermen have now begun to return to sea after
strikes since mid March. Some of them held a thanksgiving
ceremony on Wednesday after their demand was accepted.