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.