New Delhi: The government plans to raise concerns with Indonesia over Jakarta’s plan to raise export taxes on coal and base metals, coal secretary Alok Perti said on Tuesday.
“The government will take this up with Indonesia,” Perti told Reuters.
Indonesia plans to impose a 25% export tax on coal and base metals this year, jumping to 50% in 2013, as it looks to boost local investment and take a bigger slice of mining profits.
Perti added the hike by Indonesia would push the cost of imported coal up just after New Delhi removed its own import duty on thermal coal for power plants.
“It will also nullify our efforts to help imports by removing the 5% import duty on thermal coal,” he said.