TEMPO.CO, Jakarta - The Coordinating Maritime Affairs Ministry proposed the removals of income tax and non-tax state revenue (PNBP) for the upstream oil and gas industry in a bid to lower gas prices for industries.
"The option has been discussed with the Finance Ministry," Amalyos Chan, deputy assistant for mineral, energy and renewable resources at the Maritime Affairs Ministry, said in Jakarta on Tuesday, November 1, 2016.
Amalyos admitted that such an option could trigger state revenue losses.
"However, we have to choose, and we have to change our priority from collecting oil and gas foreign exchanges to strengthening industries," Amalyos added.
Earlier, President Joko "Jokowi" Widodo signed Presidential Regulation No. 40/2016 on gas prices for industries. Article 3 (1) of the Regulation states that the Energy and Mineral Resources Minister is authorized to set certain gas prices if the natural gas prices remain above US$6 per million metric British thermal unit (mmbtu).
Amalyos explained that the removal of taxes for the upstream oil and gas industry is only one among other ways to lower gas prices. Other options include cost efficiency at the transmission and distribution levels.
Wiratmaja Puja, director general of oil and gas at the Energy and Mineral Resources Ministry, earlier explained that the gas price at the upstream level was set at US$5.9 per mmbtu. Given transmission cost of US$0.9 and distribution cost of US$1.5, the gas price at the customer level was set at US$8.3 per mmbtu.
Amalyos revealed that the third option is encouraging oil and gas cooperation contract holders (KKKS) to be transparent about the price issue.
"The gas price is expensive at the upstream level, but the KKKS won't admit that it's their fault. The upstream gas price must be audited," Amalyos added.
FAJAR PEBRIANTO | NN
Source: Gov't Mulls to Remove Oil, Gas Taxes
No comments:
Post a Comment