Export tax classification for zirconium confusing

The classification of export tax of zirconium ore into three categories is not only confusing but also has the potency to inflict losses financial losses to the state, according to the association of Indonesian zirconium miners (APZI).

The association?s chairman Ferry Alfiand as qouted by Kontan newspaper said that the tax classification had caused confusion among surveyors and customs official. The classification could also cause financial losses to the state because miners could use lower zirconium content in their export document.

According to trade minister?s regulation no 66/2012 issued in November, export tax for zirconium is divided into four categories ? zirconium (Zr02) with content of below 50 percent is subject to export tax of $1,277.79 per ton; Zr02 with content of between 50 percent and 60 percent is $1,538.57 per ton, Zr02 with content of above 60 percent is $1,708.7 per ton

Previously, under the trade minister?s regulation No. 61/2012, issued on October, zirconium is divided into two categories ? zirconium ore (Ze02) with export tax of US$1,556.39 per ton and zirconium silicate with export tax of $181 per ton.

The new classification has caused an increase in the export tax payment that has to be paid by zirconium miners. (*)