Collection of tax on coal export stopped

Friday, September 15 2006 - 01:58 AM WIB

The Directorate General of Customs Duties has instructed all of its provincial offices across the country to temporarily stop collecting tax on coal export pending the issuance of Finance Ministerial Decree on the scrapping of the coal export tax. The stoppage of coal export tax collection was effective on September 13, 2006.

The Directorate General of Customs and Duties? head Anwar Suprijadi gave the instruction in a circulating letter No SE-28/BC/2006 issued on Wednesday.

The letter is addressed to heads of all provincial customs duties offices and heads of all customs duties services throughout Indonesia.

?Referring to a Finance Ministerial letter No. S 396/MK.10/2006, on coal export tax collection, it is said that pending the process of removing two ministerial decrees on coal export tax collection, effective September 13, 2006, collecting coal export tax must be stopped,? Anwar said in the letter.

Under the Finance Minister Regulation PMK 95/PMK.02/2005, issued by the former Finance Minister Yusuf Anwar, the imposition of coal export tax was aimed to maintain the availability of coal supply at home.

Meanwhile, the Indonesian Coal Mining Association (ICMA) hailed the Directorate General of Customs Duties? move to send a circulating letter prohibiting all heads of provincial customs duties from collecting coal export tax, saying that the instruction was in line with the Supreme Court?s decision to accept judicial review on the Finance Ministerial Decree on coal export tax filed by ICMA.

?ICMA warmly welcome the issuance of the circulating letter. This is an evidence that the country still upholds the law,? he said.

Upstream Oil and Gas Regulator?s (BP Migas) Deputy III for Mining Wimpy S. Tjetjep, acknowledged the issuance of the circulating letter. ?I have heard it. This is good news,? he said.

PT Adaro Indonesia?s administration manager Priyadi also hailed the issuance of the circulating letter. ?Starting September 13, we did not pay coal export tax,? he said. (godang)

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