JAKARTA. Ministry of Finance is still assessing the impact of the new regulation on exports of crude mineral and coal to state revenues. However, the ministry confirmed that the revenues can boost the state revenues.
The new regulation allows a mining company to export crude mineral products in one condition: the company has to hold special mining license (IUPK).
Head of Center of State Revenues Center at Fiscal Policy Agency of Ministry of Finance Goro Ekanto estimates that the policy will boost state revenues from taxation and customs sectors, on the grounds that every IUPK holder has to comply with existing taxation rules, unlike the contract of work holder. To date, the contract of work holders only pay annual royalty.
The government is also planning to increase export duties on crude mineral and coal. Goro said, the Minister of Finance is likely to approve the increase in export tariff capping. To date, the export tariff stands at 7.5%.
Previously, Ministry of Energy and Mineral Resources had proposed the increase in export duties at maximum of 10%, depends on the mineral types and the grade of the concentrates.
As information, the revenues of export duties had dropped when the government terminated export of crude mineral export in 2014. For an example, the export duties’ revenues dropped from Rp 15.81 trillion in 2013 to Rp 11.32 trillion in 2014.
In other words, the export duties revenues had dropped by 28.3% in 2014. This had not included export and company revenues. Therefore, Ministry of Finance hopes that the new regulation will reverse the trend of taxation revenues, which tended to decline.
Executive Director of Center for Indonesia Taxation Analysis (CITA) Yustinus Prastowo estimates, this policy will affect to the increases in non-oil and gas tax incomes and value added tax.
(Muhammad Farid/Translator)
