Gov't Urges Mining Companies to Participate in Tax Amnesty  

TEMPO.CO, Jakarta - The Finance Ministry is targeting the oil, gas, mineral, and coal sectors to participate in the tax amnesty program, as the compliance level shown by these sectors is low. 

Finance Minister Sri Mulyani Indrawati said that she had been in a special meeting with mining, coal, oil, and gas companies earlier on Wednesday, October 26, 2016.

"I have asked them to participate in the tax amnesty program, because mining, coal, oil and gas companies need to improve their tax compliance," Sri Mulyani said at her office in Jakarta on Thursday, October 27, 2016.

Finance Ministry's Tax Director General Ken Dwijugiasteadi said that the number of annual tax return submissions has continued to decline since 2013.

"The number [of taxpayers who don't submit annual tax returns] is bigger than those who submit the annual tax return," Ken revealed.

In 2013, as many as 2,966 taxpayers submitted annual tax returns, and 3,035 taxpayers failed to do so. A year later, the number of taxpayers who submitted annual tax returns was 2,841, while the number of those who failed to do so was 3,160.

In 2015, the number of compliant taxpayers declined further to 2,577, while the number delinquent ones increased to 3,624. Ken said that as many as 2,565 taxpayers have tax debts of less than Rp 100 million (US$7,700), nine others have tax debts of between Rp 100 million and Rp 800 million (US$61,500), and three taxpayers have tax debts amounting to Rp 500 million (US$38,500).

The low tax compliance in the mining sector is reflected by low level of participation in the tax amnesty. Of 6,001 taxpayers, only 967 of them participate in the tax amnesty program with a total retribution fee of Rp 221 billion (US$17 million). Meanwhile, in the oil and gas sector, only 68 out of 4,114 taxpayers participate in the program with retribution fees totaling to Rp 40 billion (US$3 million).

In addition to calling on mining companies to participate in the tax amnesty program, the government will encourage them to regularly fulfill their tax obligations. Sri Mulyani said that their excuse for being delinquent taxpayers was the declining commodity price.

"But when the commodity prices soared over the last five years, their tax compliance has not been improved," Sri said.

VINDRY FLORENTIN