MEMR in talks with MoF over VAT restitution issue

By Tri Subhki R

The Ministry of Energy and Mineral Resources (MEMR) is still in talks with the Ministry of Finance (MoF) to find out-of-court solution for coal miners facing difficulties in getting value added tax (VAT) restitution from the tax office under the MoF.

"We are discussing bilaterally with Ministry of Finance to find the solution," Bambang Gatot Ariyono, Director General of Mineral and Coal, said on the sidelines of Coaltrans Conference in Bali recently.

Bambang acknowledged that some coal firms holding the Generation III Coal Contract of Work (or PKP2B) have gone to the tax court to settle the VAT restitution dispute, but court process takes time to complete.

"We are trying to find solution to settle the issue without having to go to Tax Court," he said.

The Generation III PKP2B guarantees the coal miners to get restitution for VAT input. But the tax office has declined to refund the VAT following the issuance of a government regulation in 2000 which declares coal as non-VAT-able.

This has been protested by the miners as Generation III PKP2B adopts a lex special principle, which means that regulations issued after the signing of the contract can not be applied.

Editing by Reiner Simanjuntak