FISCAL POLICY AGENCY: TAX REDUCTION INCENTIVES FOR SNAPPER COAL PRODUCERS APPLY 2019
JAKARTA, APBI-ICMA: In addition to designing the sixth revision of Government Regulation No. 23/2010 regarding the transfer of status from the Coal Mining Concession Agreement (PKP2B) to a Special Mining Business License (IUPK), the government is also working on regulations on state revenue from the coal business.
ESDM Ministry Director General of Mineral and Coal (Minerba) Bambang Gatot Ariyono revealed, currently for the IUPK in the mineral subsector, there has been a legal umbrella in the form of PP Number 37 Year 2018 concerning the treatment of taxation and / or Non-Tax State Revenues in the mining business mineral. However, for the coal mining business, there are no similar regulations. "Yes, we will see it later, which is clear (PP No. 37/2018) that it is new to minerals, which is coal," he told Kontan.co.id, Tuesday (11/13).
Based on the proposed draft Kontan.co.id received, in the PP, PKP2B will only pay the Corporate Income Tax by 25% from the previous 45%. However, the decrease in corporate income tax was followed by an increase in Coal Output Funds (DHPB) from 13.5% to 15? and an additional tax of 10% of net income. Meanwhile, the distribution of central PNBP is as much as 4% of net income, and the Regional Government's share is 6% of net profit.
The Head of the Fiscal Policy Agency's (BKF) State Revenue Policy Center Rofianto Kurniawan did not deny that the current discussion was about PPh, taxes from 10% of net income, also regarding DHPB.
However, he said, currently the number of points is uncertain, because it is still in the process of discussion with a number of related ministries and institutions (k / l).
"The proposal from ESDM, those who want this arrangement. Those points are still discussed together between ministries and institutions, including what kind of acceptance of entrepreneurs, we are still in agreement. The numbers are also still being discussed," explained Rofianto.
According to Rofianto, currently this discussion involves cross ministries, namely the Ministry of Finance, the Ministry of Energy and Mineral Resources, the Ministry of Law and Human Rights, as well as the State Secretariat. The hope is that this PP can be completed along with the sixth revision of PP No. 23/2010 which is targeted to be completed this month. Although for its implementation, he said that it could only be effective in 2019.
"Yes, specifically for coal companies. We are trying to complete the regulation in 2018. The implementation can hopefully run in 2019," he added.
Energy Economics Observer from Gadjah Mada University Fahmy Radhi believes that the sixth revision of PP No.23 / 2010 and the issuance of PPs that regulate the taxation of coal businesses is a realistic step to ensure investment certainty in this sub-sector. So, said Fahmy, PP regarding taxation on usha coal and changes to PP No.23 / 2010 are two inseparable things, to make the coal business climate more investment friendly.
Meanwhile, regarding a number of points and points in the draft PP, Fahmy considered that the change in tax rates was relatively fairer applied to the company. However, on the other hand, the change did not reduce Government tax revenue because there was an increase in DHPB rates and additional tax on net income.
"Indeed, the corporate income tax is down, benefits investors, but there is an additional tax from net income. If net income increases, the tax will also increase. It can be called a mutual benefit," Fahmy explained.
On the other hand, as part of the first generation PKP2B preparing to become an IUPK, PT Adaro Energy and PT Kideco Jaya Agung claimed to be ready to follow the rules to be issued by the government. However, both of them hope that the regulation to be launched will still consider the dynamics of the coal industry.
"We hope that regulations in the coal industry can make national companies like Adaro still exist," said PT Adaro Energy Tbk Head of Corporate Communication Febrianti Nadira.
Meanwhile according to Indika Energy's Managing Director & CEO Azis Armand, so that certainty and business competition can take place in a healthy manner, he hopes that the implementation of this policy will apply equally to all business actors.
However, Azis was still reluctant to comment further until this regulation was actually implemented, including the matter of extending the contract and changing the status of Kideco Jaya Agung from PKP2B to IUPK. "At present it is still too early to discuss concrete steps, also regarding the extension of the agreement or conversion into permits," he said.
htt Fiscal Policy Agency: Tax reduction incentives for snapper coal producers apply 2019