The Constitutional Court (MK) decided, any heavy equipment used in the mining industry remains subject to taxes on motor vehicles.

 heavy equipment picture by kaskus

The Constitutional Court (MK) decided, any heavy equipment used in the mining industry remains subject to taxes on motor vehicles.


The Constitutional Court (MK) decided, any heavy equipment used in the mining industry remains subject to taxes on motor vehicles. Decision of the Constitutional Court rejected the judicial review of Article 1. 13, Article 5 Paragraph (2), Article 6 Paragraph (4), and Article 12 Paragraph (2) of Act (Act) No. 28 of 2009 on Regional Taxes and Levies.

"Declare rejected applicants for all," said Chairman of the Constitutional Court Mahfud MD in the ruling of the trial in the Court Building, Jakarta, Tuesday (01/08/2013).

Mahfud explained, heavy equipment is a part of the vehicle. Because, according to function, heavy equipment transporter used as mining. Therefore, the Court considered that the machine should still be subject to taxes on motor vehicles.

Meanwhile, according to the judge Muhammad Alim, meaning motor vehicles as mentioned in the Law on Regional Tax and Retribution is clear. That, he says, is to limit the objects taxed and restribusi area. In addition, the imposition of taxes on heavy equipment by Alim intended to avoid any potential tax pengemplangan.

"It also aims to close the gap avoidance and tax evasion (loopholes) and simplify tax administration and other purposes," said Alim.

Application for judicial review was filed by seven companies engaged in mining. The company is called Bukit Makmur Mandiri Utama, Pama Persada Nusantara, Self Manage Success, Ricobana Abadi, Nipindo Primatama, Lobunta Kencana Raya, and Uniteda Arkato are each represented by a director.

Seven companies object to heavy equipment, motor vehicles are taxed because the tools in question are not used to the activity as a function of vehicles in general.