Coalminers welcome govt's plan to impose VAT on coal
Thursday, August 25 2005 - 03:05 AM WIB
The Association of Coal Mining Companies (APBI) has expressed its full support to the government's plan to impose 10 percent Valued Added Tax (VAT) on coal, saying that the tax measure would benefit its members, Bisnis Indonesia daily reported on Thursday.
The association's chairman Jeffry Mulyono said in Jakarta on Wednesday that all of the association's members welcome the government's plan to impose 10 percent VAT on coal beginning next year.
According to him, the imposition of VAT is good for coal miners because with the tax payment, coalminers will be able to claim the refunds for the VAT they paid on goods and mining equipment from their suppliers.
At present, coalminers who are freed from VAT payment are not allowed to claim the VAT refunds. When the VAT payment begins effective, the coalminers will be able to retain between 5 percent and 7 percent of their royalties as the refunds for the payment of VAT on goods from their suppliers, Jeffry said. (*)