Tax office targeting over 6,000 IUP mining firms

The Directorate General of Taxation is looking on pursuing about 6,000 mining companies holding the so-called IUP mining permit for tax arrears estimated to worth trillions of rupiah, Investor Daily reported Friday.

Kismantoro Petrus, a director at the tax office, was quoted as saying that the directorate was particularly trying to force the small miners to pay tax properly. The small miners are seen to be a significant source of tax revenue because of their huge numbers.

He acknowledged, however, that it would be quite challenging in squeezing for tax revenue from the small miners, not only because of their small operations in remote areas, but also due to the lack of necessary data as the local governments have never passed on the production reports of this group of miners to the tax office.

There more than 10,642 holders of IUP mining permit, but it is estimated that only about 40 percent are considered to clear and clean status, while the remaining 60 percent are not ?clear and clean? including possibly having tax arrears. (*)