ICMA files for judicial review on controversial coal export tax
Monday, April 3 2006 - 03:39 AM WIB
Indonesian Coal Mining Association (ICMA) has petitioned the Supreme Court late last month to carry out a judicial review of the regulation issued by the Ministry of Finance which imposes a 5 percent tax on coal exports, ICMA executive director Soedjoko Tirtosoekotjo said on Monday.
The association considers the issuance of the regulation was in conflict with the existing laws.
?We don?t know when we?ll get the result,? he said.
The Ministry of Finance issued a decree to impose a 5 percent tax on coal exports in October last year, arguing that the policy is necessary for the effort to curb coal exports and provide greater supply of coal to the local market.
The regulation does not affect the holders of the First Generation Coal Contract of Work (CCoW) who have fixed tax obligation under the contract. The government, however, imposes the taxes on all coal producers with the promise of reimbursing the tax payment by the First Generation CCoW holders. (Godang)