The data released by the Corruption Eradication Commission (KPK) at the end of last year regarding the mining industry is quite surprising. In this sector, thousands of small to medium sized companies are suspected of not paying taxes, including coal concessionaires, for several years.
In 2014, the KPK noted that 1.850 mining companies did not have a taxpayer identification number (NPWP). The companies are spread across various regions such as West Sumatra, Southeast Sulawesi, East Kalimantan, and West Kalimantan. The odd thing is, even though they don't pay taxes, these companies still carry out mining and trade transactions, especially exports.
The problems in the mining industry do not stop at taxes. Around 70 percent of the 11 thousand companies also do not pay non-tax state income (PNBP), royalties, and other fixed fees. Regarding the environment, almost 90 percent of mining entrepreneurs do not deposit reclamation guarantees and post-mining plans.
Since three years ago, the Directorate General of Taxes has identified the unfair practices of a number of bad smell companies trying to avoid tax or tax avoidance and tax evasion.
If it is calculated by calculating the last few years, the value of tax arrears from these companies reaches trillions of rupiah. So far, the amount of unpaid taxes from the sector is intertwined with the reporting rate of Annual Tax Returns (SPT) which is still very poor.
In fact, there are indeed many companies that have mining concessions but do not register as taxpayers. One of the factors is that mining business permits for areas of several hectares are issued by local governments.
Likewise, when the coal is transacted, there are many data that do not match between a number of agencies. As a result, the determination of the payment of royalties, corporate taxes, and PNBP are often not monitored properly.
To unravel the problems surrounding the coal mining business and its impact on state revenues, Katadata Forum and Perkumpulan Prakarsa held a discussion event with the theme "Coal Business Holes in State Revenues".
Through this event, it is also hoped that the public will know about the efforts that have been made by the government so far to optimize state revenues through the management of coal mining businesses.
Prakarsa Association and Katadata.co.id will discuss the issue at the Mezzanine Ballroom, Aryaduta Hotel, Jl. Prajurit KKO Usman and Harun No.44-48, Gambir, Central Jakarta on Thursday, February 28, 2019 at 13.00 – 15.00 WIB.
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