Govt, coal association to establish special team on value added tax

The government and Indonesian Coal Association (APBI) will jointly set up a special team so as to identify the negative impacts of the implementation of government rulings on value added tax which association members view as unfair.

The 11-member team will comprise officials from the minister of finance, the office of the coordinating minister for the economy, APBI, and the directorate general of mineral resources, association chairman Jeffrey Mulyono told Petromindo.com on Wednesday.

Firman Tambunan, the deputy coordinating minister for the economy, will chair the team, Mulyono said after attending a meeting at the coordinating minister?s office.

?Within one month, the team will reach conclusions about the impacts of the government decree,? Mulyono added.

Indonesian coal entrepreneurs recently threatened to sue the government in state administrative court because the new decree imposes value added tax on brickets while exempting coal producers from paying such taxes.

Association leaders said the decree was only meant for enabling the government to meet its tax revenue targets. (godang)