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Friday, 15 October 10
VALUE ADDED TAX FOR COAL TO RE-INTRODUCE IN INDONESIA


COALspot.com:
Indonesian government is drafting a ministerial decree to re-introduce value added tax for coal and mineral. Coalindo weekly news letter stated that, according to the secretary to the director general of mineral, coal and geothermal, the decree is being drafted by Indonesian Ministry of Energy and Mineral Resources (MEMR) and will be expected to issue the end of November 2010. However, there is no additional information available for the percentage of tax that will be introduced and whether VAT will be applicable to the only domestic market or including export market.  

“If it is applicable to the export market, then Indoensian coal prices will jump drastically, as recently the government has issued a ministerial regulation 17/2010 to control selling price of Indonesian coal as per Indonesian coal price reference” said a coal exporter.

“Based on Ministry of Energy and Mineral Resources’ recommendation Ministry of Finance will issue the decree’, said a officer from mining company.

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