Timah protests plan to impose regional tax on tin sales
Thursday, September 20 2001 - 04:05 AM WIB
The state-owned tin mining company PT Timah Tbk protested the new ruling issued by the Bangka Island administration to impose a 20 percent regional tax on tin sales.
Timah president Erry Riyana Hardjapamekas said that the company had the rights to make an appeal to the central government to annul the ruling within 30 days since the regional ruling was announced.
Erry said that Timah would consider closing down the operation on the island if the administration proceeded with the tax plan.
He said that the company?s profit was declining due to a combination of massive illegal mining at its sites and low commodity price in the international market.
He said that Timah expected net profit this year to drop by 80 percent to Rp 64 billion (US$1=Rp 9,400), while next year the company could suffer a loss of up to Rp 500 billion.(Amoros)