Govt threatens to revoke Lampung?s local tax regulations

The central government has threatened to revoke three tax regulations issued by the provincial administration of Lampung if the province does not revise them, Kompas daily reported on Tuesday.

The head of the public affairs department at the provincial administration office said in Bandar Lampung on Monday that the central government felt the need to revise the tax regulations because the regulations had caused a negative impact to the business activities.

The three regulations issued late last year have empowered the local government to impose a levy payment on the distribution of mineral products including coal and cement as well as farm products. The policy has caused an outcry to concerned parties such as the Muara Enim South Sumatera-based PT Tambang Batubara Bukit Asam, which ships most of its coal through the province.

The province?s three tax regulations are part of 150 local regulations, which have been considered against the economic principle. The central government has urged the provinces to revise them, or they will be annulled.(*)