Govt to introduce new mining tax system

The government will change the tax system in the mining sector into a floating tax system from the current corporate tax system, according to a senior official at the Ministry of Mines and Energy.

Director for mining sector development Simon F. Sembiring said that the new tax model in the mining sector would be included in the draft of the generation eight mining contract of work (COW) which would be debated by the House of Representatives later this year.

Simon said that the new tax model was expected to attract more investors into the country's mining sector.

He added that other issues included in the generation eight COW was community development program and the people's cultural rights. (*)