The establishment of better legal certainty regarding income tax in the government regulation is expected to facilitate mining business actors to fulfill their tax obligations.
Jakarta (ANTARA) - The government had issued Governmental Regulation Number 15 of 2022 on Enforcement of Taxes and/or Non-Tax State Revenue (PNBP) in Coal Mining that was stipulated on April 11, 2022.

"The regulation is an important milestone (to serve) as a legal basis for contract convergence that will eventually establish a (business) licensing regime to increase state revenues," Head of the Fiscal Policy Agency (BKF) of the Finance Ministry Febrio Kacaribu noted in an official statement received here on Saturday.

It has been issued to complement Law Number 3 of 2020 on the Amendments to Law Number 4 of 2009 on Mineral and Coal Mining. Law Number 4 of 2009 stipulates that expiring mining contracts can be extended with a Special Mining Business Permit (IUPK), by considering the condition of state revenues.

The first part of the government regulation describes the implementation of income tax payments for coal mining business actors, including the Mining Business Permit (IUP) holders, IUPK holders, IUPK as Continuation of Contract/Agreement Operations holders, and Coal Mining Concession Work Agreement (PKP2B) holders.

"The establishment of better legal certainty regarding income tax in the government regulation is expected to facilitate mining business actors to fulfill their tax obligations," the BKF head noted.

Meanwhile, in the second part, the regulation stipulates that the PNBP rate for coal production will be implemented progressively on the holders of IUPK as Continuation of Contract/Agreement Operations in accordance with the Coal Reference Price (HBA).

Hence, if the HBA is low, the PNBP for coal production will also be set at a low rate, and vice versa. Thus, it will not burden the business players.

In addition, to increase coal allocation for the domestic industry, the government has determined a lower single PNBP tariff of 14 percent for domestic coal sales.

"The implementation of the regulation is expected to realize a sustainable state income to strengthen the future fiscal condition," Kacaribu added.

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Translator: Sanya Susanti, Uyu Liman
Editor: Suharto
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