Coal export tax will not be based on coal prices

The government's plan to collect a five percent tax from coal exports will not be linked with coal prices as earlier proposed by former coordinating minister of economy Aburizal Bakrie, according to Anggito Abimanyu, the head of the agency for financial and economic study and international cooperation at the ministry of finance.

"There will be no price references to be imposed on the coal export tax," he was quoted as saying by Koran Tempo daily. He added in the cabinet meeting on Wednesday, the new finance minister was asked to soon implement the finance minister's regulation No 95/PMK02/2005 governing the proposed coal export tax.

Former coordinating minister of economy Abrurizal Bakrie said earlier that the export tax would be imposed only if the price of coal reached above US$50 per ton in a bid to protect small and medium-scale coal miners.

Abmanyu said that the coal export tax which would be imposed on coal exporters had been designed to secure the coal supply in the local market, rather than to help the government reach its export revenue target. (*)