Layered Taxes Called To Be A Stumbling Stone For Tin Downstreaming

Tin (Photo: dock. Antara)

JAKARTA - The Indonesian Tin Exporters Association (AETI) revealed that currently there are obstacles that are a stumbling block for business actors to downstream.

Chairman of AETI Harwendro Adityo Dewanto said business actors often have to deal with layered taxes even though they are carried out by companies in the same group. In fact, he said, tin business actors need fiscal support from the government to encourage the absorption of tin commodities and domestic downstream.

"The funny thing is, I signed a tax like that, double tax. Even though the company is still one," said Harwendro at the Minerba Convex, Thursday, October 16.

He gave an example when his company sold ingots to its subsidiaries in one area, the company was taxed.

"It's still a complex, standing next to him. But when we sell our ingots to our subsidiaries, we get tax. Then we sell solders, we get tax. This is so funny, we are subject to double tax, "he explained.

According to him, this condition is actually inversely proportional to the spirit of downstreaming that is heralded by the government. For this reason, he hopes that the government will simplify the existing regulations so that downstreaming can be carried out easily.

"We hope that the government will immediately simplify regulations and provide tax incentives for the downstream tin industry," he continued.

Harwendro also highlighted the imposition of royalties on his party carrying out mining activities from their own mines, then selling ingots to subsidiaries, but was signed royalties. In fact, he said that he had been charged an exchange fee for tin commodities.

"If we export, we may be subject to royalties. But the subsidiary itself in the country, we are subject to royalties," said Harwendro.