Tax Chaos, PGN Asks The DGT To Hold Back Until The Last Legal Decision

PGN employees are seen working in the production facility area. (Photo: Doc. PGN)

JAKARTA - A tax dispute involving two state-owned institutions, namely PT Perusahaan Gas Negara Tbk. (PGN) and the Directorate General of Taxes (DJP) enter a new phase after the Supreme Court or Supreme Court decision.

In this legal provision, PGN is obliged to pay the principal of the dispute amounting to Rp3.06 trillion with additional potential fines. In response to this, the oil and gas issuers codenamed PGAS shares finally issued an official statement.

In a statement received by VOI on Tuesday, January 5, PGN's Corporate Secretary Rachmat Hutama explained that the company would submit a request to the DGT regarding tax collection after the last legal remedy.

Because this is considered to be able to help PGN to manage finances properly and be able to carry out business in a balanced manner going forward.

"As the manager of 96 percent of national infrastructure and 92 percent of natural gas trading, PGN continues to support the government's vision and mission of boosting domestic gas consumption. This is important for the national economy, so that it can improve people's welfare, ”he said.

As previously reported, there is a difference in interpretation of the Minister of Finance Regulation PMK-252 / PMK.011 / 2012 concerning the implementation of Value Added Tax (PPN) for natural gas.

DGT assesses that PGN must pay VAT to the state as part of its gas production and buying and selling activities to consumers. Meanwhile, PGN assessed that the regulation PMK-252 / PMK.011 / 2012 did not explicitly mention the rules for remitting VAT to the state for business activities carried out.

As a result, PGN then received a VAT deposit bill with an estimated value of up to Rp3.06 trillion. On the other hand, PGN has not collected taxes from consumers who buy the company's products.

PGN itself is currently carrying out several assignments from the government, such as in the construction of household gas networks for 52 Regency Cities. In addition, PGN is also said to be trying to provide special gas prices for seven special industrial sectors according to the Minister of Energy and Mineral Resources Decree 89.K / 2020.

"We are also working on the implementation of the LNG gasification program for PLN power plants in order to provide efficient electrical energy and create opportunities for PGN to develop natural gas infrastructure in Central and Eastern Indonesia through LNG," he said.

In terms of the assignment target, this gas company is also trying to implement the construction of household gas through PGN Sayang Ibu, targeted to reach around 170,000 SRT with an estimated gas volume of around 10 BBTUD.

"Support from all stakeholders is expected to help PGN in its efforts to expand the development of natural gas infrastructure and services and in particular in achieving the national mix target for sustainable national energy security," Rachmat concluded.