Govt to remove tax export of high grade mineral products

The Energy and Mineral Resources Ministry is expected to soon remove the 20 percent tax exports imposed on mineral products which have purity content in line with the minimum standards set by the government, Kontan business daily reported on Monday.

Dede I Suhendra, the director for supervision and development at the ministry, said last week that the tax incentives would be given to encourage miners to upgrade the purity content of their mineral products.

The incentive proposal was based on the results of the assessment conducted by the ministry?s internal team on the possible change in the purity standards. The minimum standard for tin metal exports is for example will be changed from 99.85 percent Sn content to 99.9 percent.

Dede said that after the regulation on the change on the minimum purity standards was implemented, all mineral products which have met the minimum grade standard would be exempt from export tax payment.

According to the ministry?s regulation No 11/2012, miners are now allowed to export mineral products below the minimum purity standards as long as they have obtained status as a registered exporter. They should also pay tax export of 20 percent. (*)