PLN will ask for tax relief if electricity tariff is not increased

The ministry of energy and mineral resources will support the state owned electricity company PLN's plan to ask for a tax relief from the ministry of finance for the 2004 fiscal year, Detik.com reported on Saturday.

"It is quite reasonable for PLN to ask for a tax relief if it is not allowed to increase the electricity tariff next year," Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Friday.

The PLN management has asked the ministry of finance for a tax relief if it is not allowed to raise the electricity tariff in 2004. According to PLN's president Eddie Widiono, PLN?s tax obligation continues to increase, due to the large amount of tax it should pay following the company's asset reevaluation.

PLN, for example, has to pay income tax totaling Rp 11.5 trillion due to the swelling of its assets resulting from the asset evaluation. The government has agreed to meet PLN's requirement to pay the tax in five years but the electricity company is also required to pay the penalty for the delay in the tax payment. (*)