Oil and gas contractors appointed to collect taxes

The government has formally appointed oil and gas production sharing contractors (PSCs) to collect value added tax (VAT) and sales taxes on luxury goods from their suppliers beginning Feb. 1, Neraca daily reported on Saturday.

Marwanto Harjowiryono, a spokesman for the Ministry of Finance, said in Jakarta on Friday that the appointment of oil and gas contractors as the collector of VAT and sales tax on luxury goods was stipulated in the Finance Minister Regulation No: 11/PMK03/2005.

"The oil and gas contractors should collect the taxes from their business suppliers during the transfer of the taxable of goods and services," he said, adding that the VAT is 10 percent while the amount of the sales taxes on luxury goods that have to be paid is based on Law No: 18/2000.

Marwanto said that the oil and gas contractors were obliged to transfer the tax payment to the tax office on the 15th day in the following month after transaction, at the latest and also obliged to report the tax payment to the tax office on the 20th day in the following month after the transaction, at the latest. (*)