Minister of Finance rejects Rio Tinto?s request on tax regime

The Ministry of Finance rejects Anglo-Australian mining giant Rio Tinto’s request for nail down tax regime during the entire contract of work period of 20 to 25 years at nickel mine in La Samphala, Central Sulawesi. Investor daily reported Tuesday.

 

Director general of geothermal, coal and minerals Simon Felix Sembiring said that Minister of Finance Sri Mulyani Indrawati didn’t agree with the nail down tax regime proposal because it is no longer used anywhere in the world.

 

Simon said the Finance Ministry’s argument that nail down tax system is no longer used in the world is not right given that all tax systems abroad are already stable.  

 

“In foreign countries, there are no levies at the local level. Perhaps, the understanding (of this situation) has not yet reached the Finance Ministry,” Simon mentioned.

 

Earlier, the government and Rio Tinto have reached an agreement on the royalty for the company's future in La Samphala. (*)