Govt to appoint valuator to study tax policy for coal

The government will soon name an independent valuator to decide whether coal producers should be exempted from value added tax (VAT) as stipulated by existing regulations, geology and mineral resources director general Wimpy S. Tjetjep said Thursday.

?The valuator will decide whether or not VAT be imposed on coal,? Wimpy told reporters on the sidelines of a seminar.

The official did not mention the name of the valuator, however.

Exiting tax policy, issued in 2000, exempts coal firms from VAT. In the past, the inclusion of VAT in coal prices for the domestic market enabled coal producers to offset similar taxes imposed on their imported capital goods.

Coal producers protested the tax regulation immediately after it was issued, and even planned to sue the government in court. Their move prompted the government delay implementing the policy.

The regulation, however, imposes VAT on coal briquette. (godang)