ICMA asks for equal treatment on VAT reimbursement

By Tri Subhki R

The Indonesia Coal Mining Association (ICMA) urged the Directorate General of Taxation at the Ministry of Finance to apply equal treatment to coal miners holding the so-called third generation coal contracts of work (CCoW) in implementing value added tax (VAT) reimbursement.

ICMA Executive Director Supriatna Suhala said that there has been inconsistency in implementing the VAT restitution mechanism due to discrimination by the tax office against some of the third generation CCoW coal miners.

He said that while some of the third generation CCoW coal miners have been able to claim their VAT reimbursement, others failed. ?We ask for equal treatment before the law,? Supriatna said on Tuesday.

He emphasized that the third generation CCoW coal miners have the same obligations and rights according to the contracts signed with the government.

Supriatna also said that the holders of the third generation CCoW, with lex specialis status, are obliged to pay VAT according to the contract, but on the other hand, they also have the rights to claim for reimbursement if they overpaid the VAT.

Supriatna explained that the inconsistency in implementing VAT reimbursement by the Directorate General of Taxation occurred as the new Director General has different perspective toward the VAT reimbursement on third generation CCoW.

Editing by Reiner Simanjuntak