Palm oil entrepreneurs complain about multiple taxes

Rabu, 08 Februari 2012 | 09:01

The Indonesian Palm Oil Entrepreneurs Association (GAPKI) said various government policies had caused the palm oil industry in the country to be burdened by multiple taxes."The government`s aim is to increase state revenue but the regulations it has issued for the purpose, in our view, deviate from the philosophy of the tax law, and have created a burden on the oil palm industry," Gapki marketing chairman Susanto said here on Tuesday.

Citing an example of a rule of PMK No.78/2010 about crediting mechanism on sales tax, it just leads to multiple interpretations to tax office to confirm the correction and interpretation of the tax office.

In addition, the tax office at the end of 2011 issued the rule SE-90/2011 about VAT crediting for the oil palm industry that had formally banned the VAT crediting by the oil palm industry, although the industry processed the fresh fruits to become crude palm oil (CPO).

Susanto said, so far the Taxation Directorate General banned and corrected the VAT crediting by the oil palm industry on the reason that the oil palm industry produces fresh fruits which is stipulated in the government regulation PP 7/2007 as strategic commodity that is exempted from VAT, although the fresh fruits then processed into CPO with payable VAT.

Apart from that Gapki marketing chairman said that all the complaints have been conveyed to the government through formal and informal channels. (*)