KEM vows to settle tax arrears

Gold mining firm PT Kelian Equatorial Mining (KEM) in West Kutai regency, East Kalimantan, will settle its tax arrears with the provincial administration, according to company president John Vale.

"We always pay our tax, especially the direct tax payment to the (central) government and the East Kalimantan administration? We will immediately settle the (unpaid) automotive tax with the East Kalimantan administration," Vale was quoted by the local Kaltim Post daily.

The comment was made following reports quoting the provincial administration treasurer as saying that KEM had some Rp 168 million (US$1=Rp 8,500) in automotive tax arrears from the purchase of 168 heavy equipments.

Vale explained that based on the 1985 contract of work the company signed with the government, KEM was not obliged to pay the tax for the purchase of its heavy equipments.

He, however, said that the company was willing to cooperate with the local administration to settle any differences in understanding the basics of the contract of work.

Vale said that KEM had paid some Rp 93 billion in tax and royalty to the government last year. He added that the company was active in financing community development program. (*)