Gov. Reg. 4/2023 Details the Tax Bases of Electricity PBJT

JAKARTA, DDTCNews - Government Regulation (Gov. Reg.) 4/2023 also details the procedures for determining the selling value of electricity as the tax base of taxes on certain goods and services on electricity (Pajak Barang dan Jasa Tertentu atas Tenaga Listrik, hereinafter referred to as PBJT-TL).

Referring to Article 5 paragraph (1) of Gov. Reg. 4/2023, the tax base of PBJT-TL is the amount paid by consumers for the selling value of electricity.

“The selling value of electricity referred to in Article 5 paragraph (1) is stipulated for electricity originating from other sources with payments and self-generated electricity,” reads Article 6 paragraph (1) of Gov. Reg. 4/2023, quoted on Wednesday (1 /2/2023).

The selling value of electricity originating from other sources with payments is calculated based on the amount of the bill/fixed costs plus the kWh/variable usage costs billed in the electricity account.

This applies to consumers constituting post-paid electricity customers. On the other hand, if the consumers are pre-paid electricity customers, the selling value of the electricity is the amount of the purchase.

Based on the selling price of electricity, the electricity provider (State Electricity Company/Perusahaan Listrik Negara, hereinafter referred to as PLN) as a taxpayer is obliged to calculate and collect PBJT-TL for every use of sold or supplied electricity.

For self-generated electricity, the selling price of electricity is calculated based on the available capacity, the level of electricity usage, the period of electricity usage and the electricity unit price applicable in the region concerned.

PBJT-TL is imposed at a maximum of 10% of the selling price of electricity. Specifically for self-generated electricity, PBJT-TL is imposed at a maximum of 1.5% of the selling price of the electricity.

Gov. Reg. 4/2023 concerning the Collection of PBJT-TL was promulgated by the government to follow up on the Constitutional Court (Mahkamah Konstitusi, hereinafter referred to as MK) Decision Number 80/PUU-XV/2017 and carry out the mandate of Law 1/2022 concerning Financial Relations between the Central Government and Local Governments (Hubungan Keuangan antara Pemerintah Pusat dan Pemerintahan Daerah, hereinafter referred to as HKPD).

Constitutional Court Decision Number 80/PUU-XV/2017 states that street lighting tax (Pajak Penerangan Jalan, hereinafter referred to as PPJ) stipulated under Law 28/2009 concerning Local Taxes and Local Charges (Pajak Daerah dan Retribusi Daerah, hereinafter referred to as PDRD) may only be collected until 12 December 2021. This implies that the provisions on taxes on electricity consumption must be updated.

To align with the Financial Relations between the Central Government and Local Governments Law, all local governments are mandated to adjust the regional regulations concerning PBJT-TL in their respective regions with Gov. Reg. 4/2023. Adjustments shall be performed no later than 5 January 2024. (rig)