ID :
15682
Tue, 08/12/2008 - 18:21
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Shortlink :
https://www.oananews.org//node/15682
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GOVT TO PAY TAX RESTITUTIONS TO COAL MINING FIRMS
Jakarta, Aug 12 (ANTARA) - The government will grant tax restitutions to coal mining companies that have paid taxes in excess of their obligations, a spokesman said.
The government was currently discussing the mechanism to make the fiscal reimbursements, Director General for Minerals, Coal and Geothermal Affairs Bambang Setiawan said here Tuesday.
"The Finance Ministry has the authority over this matter," he said adding that the tax restitutions would not be made through the directorate general of taxes but through the ministry of finance.
A statement to the same effect was also made by the head of the Capital Investment Coordinating Board (BKPN), M. Luthfi.
Luthfi said the energy and mineral resources minister and the finance minister had agreed to respect the contracts made by the government and first-generation coal companies.
"The coal companies also agreed to honor their tax obligations based on the contracts," he said.
Luthfi said based on the contracts, the government must refund the excess taxes the companies had paid to the government.
In the contracts coal-mining contractors were subject to 45 percent income tax and 13.5 percent coal production fund (DHPB).
"If the companies have paid taxes more than the amounts specified in the contracts, the government should repay them," he said.
Bambang Setiawan meanwhile said that his office would also respect the State Administrative Court (PTUN) decision banning the government from collecting coal royalties pending a binding court decision.
Based on the PTUN ruling, he said, his office had refrained from deciding to declare the coal companies in default or to terminate their contracts.
"That is why we are not doing anything. It is because no legally binding decision has been made," he said.
Earlier, Bambang Setiawan, had said 12 mining companies had failed to pay royalties for the period 2001-2007 amounting to Rp7 trillion.
The government has imposed travel bans which would expire in January 2009 on the top executives of the coal mining companies for failing to pay royalties on their coal mining operations.
The government was currently discussing the mechanism to make the fiscal reimbursements, Director General for Minerals, Coal and Geothermal Affairs Bambang Setiawan said here Tuesday.
"The Finance Ministry has the authority over this matter," he said adding that the tax restitutions would not be made through the directorate general of taxes but through the ministry of finance.
A statement to the same effect was also made by the head of the Capital Investment Coordinating Board (BKPN), M. Luthfi.
Luthfi said the energy and mineral resources minister and the finance minister had agreed to respect the contracts made by the government and first-generation coal companies.
"The coal companies also agreed to honor their tax obligations based on the contracts," he said.
Luthfi said based on the contracts, the government must refund the excess taxes the companies had paid to the government.
In the contracts coal-mining contractors were subject to 45 percent income tax and 13.5 percent coal production fund (DHPB).
"If the companies have paid taxes more than the amounts specified in the contracts, the government should repay them," he said.
Bambang Setiawan meanwhile said that his office would also respect the State Administrative Court (PTUN) decision banning the government from collecting coal royalties pending a binding court decision.
Based on the PTUN ruling, he said, his office had refrained from deciding to declare the coal companies in default or to terminate their contracts.
"That is why we are not doing anything. It is because no legally binding decision has been made," he said.
Earlier, Bambang Setiawan, had said 12 mining companies had failed to pay royalties for the period 2001-2007 amounting to Rp7 trillion.
The government has imposed travel bans which would expire in January 2009 on the top executives of the coal mining companies for failing to pay royalties on their coal mining operations.
