North Barito regency to levy new tax on mining products
Tuesday, December 12 2000 - 04:30 AM WIB
`North Barito regency in central Kalimantan had issued a decree to enable it to impose the so-called "regional development tax" on mining, forestry and plantation products.
North Barito regency is home to gold mining company PT Indomuro Kencana, a subsidiary of Australia's Aurora Gold subsidiary, and several coal-mining companies.
Indomuro's government and public relations manager Hidayat Sunarto recently told Petromindo.Com that the Bylaw No. 4 of 2000, which was issued on last Aug. 9, stipulated that gold, silver, diamond and coal mining companies have to deliver 0,1 percent of their sales in developmental tax to the regency on top of the tax and royalty obligations set in their contracts of work (COWs)
The sales are calculated based on the "market price" set by the regency, Hidayat said.
"The decree will come into force as of January 1, 20001," he said.
Hidayat said the new ruling was in violation of the contracts of work (COWs) because under the COWs, mining companies were only obliged to pay taxes and royalties set in the COWs. (alex)