Government imposes tax on mining export proceeds

The Minister of Finance has issued new Regulation No 107/PMK.10/2015, imposing a final 1.5 percent income tax on proceeds from the export of coal and minerals, Kontan reported on Thursday.

The paper said that the new tax, which will be effective August 9, is part of efforts by the government to increase revenue.

The paper said that the tax will certainly create new burden among miners, which have been suffering from the current downturn in the global mining market. Coal miners in particular, which have started to slash production in response to falling price and shrinking market, have previously protest a government plan to increase royalty tariff. (*)