Forestry Ministry Zulkifli Hasan said the Finance Ministry had agreed to proposals to remove value-added tax (VAT) imposed on log products.
He claimed former finance minister Sri Mulyani Indrawati had signed a proposal to cancel the tax when she was in the office.
“[Mulyani] agreed to cancel VAT for log products. The regulation will take effect this month. This is good as it will not burden industries because raw materials were not supposed to be taxed,” he said Sunday.