Thursday, 19th October 2017

Sri Mulyani warned not to be too easy in offering tax facility

6th October 2017 | 5.199 Views
Jakarta (ANTARA News) - Outspoken lawmaker has warned Finance Minister Sri Mulyani not to be too easy in offering tax facility for PT Freeport Indonesia, a US company which has large gold and copper mine in Papua.

The Finance Ministry which supervises the Taxation Directorate General is responsible for state revenues from the taxation sector," Mukhammad Misbakhun of the Commission XI of the House of Representatives said here on Thursday.

Misbakhun questioned the plan of the Finance Ministry to provide facility in tax dispensation for PT Freeport Indonesia (PTFI).

He said there are a number of regulations on tax facilities such as the Law on Minerals and Coal, Law on Income Tax, and Contract of Work.

"Which of the facilities is to be given to PTFI?" he said.

He said the Finance Minister in speaking about tax facility should address all mining companies, adding PTFI should not the only one receiving tax facility.

Certainly, there might be companies that do not deserve facilities.

"The House of Representatives is ready to give support," he said.

Earlier , Finance Minister Sri Mulyani said chapter 128 of the Law on Minerals and Coal, regulates fiscal treatment for mining business license (IUP) and special mining business license (IUPK).

Sri Mulyani said import duty and excises, non tax state revenues (PNPB) and regional income are not regulated explicitly in the Law on Minerals and Coal.

Chapter 169 of the Law on Minerals and Coal also gives exception for state revenues from holders of contract of work in a bid to increase government income.

"Therefore, state revenues are not one item only. State revenues include in income tax, value added tax , royalty, and regional taxes including 10 percent production sharing," she said.

The Finance Ministry is preparing a draft regulation on the conversion of contract of work into IUPK.

"This would need fiscal and non fiscal obligations that need to regulated in new mining law," Sri Mulyani said.(*)