Zirconium miners want single export tax rate

The association of Indonesian zirconium miners (APZI) has asked the Trade Ministry to simplify the export tax rates imposed on zirconium mineral products in order to help boost investment in the processing of the mineral, Bisnis Indonesia reported on Saturday.

The association?s chairman Ferry Alfiand said that the export tax for zirconium which at present comprises of four rate categories should be changed into a single rate system.

As reported earlier, the director general of foreign trade has recently imposed four export tax categories for zirconium products. Zirconium (ZrO2) with content of below 50 percent is subject to export tax of US$1,277.79 per ton, while the export tax for ZrO2 with content of between 50 percent and 60 percent is $1,538.57 per ton, for content above 60 percent is $1,538.57 per ton, while the export tax rate for zirconium silicate is $1,708.7 per ton.

Imposing the different categories of export taxes has hampered export activities because it requires long analysis process conducted by two different surveyors including the customs and duty office, Ferry said.

If the government imposes a single category such zirconium with content of 66 percent, it will not only ease analysis process, but also encourages miners who produce zirconium with lower content to improve their smelting technology, he said.(*)