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Export tax rates on copper, iron, zinc and lead concentrates in Indonesia are being raised as the government tries to push miners to process the metals domestically instead of exporting the raw minerals.
Under the new rules, the tax on copper concentrates will increase to between 5% and 10%.
The tax is part of the government's push to build smelters in Indonesia to increase domestic processing and extract more value from mineral resources. June also saw a ban on raw ore exports.
However, it allowed several companies with smelter construction more than 50 percent complete to continue exporting concentrates until mid-2024 if they paid the export tax. Miners with the highest smelter completion rates are charged lower fees.
Under the new rule, copper miners with a completion rate of more than 50 percent and less than 70 percent will pay a 10 percent export tax rate. Smelters with a smelter completion rate of 70% or more but less than 90% will pay 7.5%, and smelters with a smelter completion rate of 90% or more will pay 5%, the regulation said.
Previously, the maximum tax rate that copper miners had to pay on their exports was 5%.
Rates on iron, zinc and lead concentrates will also rise to between 2.5% and 7.5% on top of the same smelter completion rates, the provision said.
The new rates will be valid till December 2023, the finance ministry said, adding that the new rates will also go up again in January 2024.
According to the regulations, from January 1 to May 31, 2024, the export tax rate on copper concentrates will be increased to 7.5% to 15% depending on smelter completion, and the export tax rate on iron, zinc and lead concentrates will be increased to 7.5% to 15%.
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