On March 20, 2024, the Ministry of Economy and Finance released a Prakas on Public Lighting Tax (PLT) in accordance with Article 99 of the Law on Taxation. This represents a noteworthy change in the taxation framework. This PLT Prakas is timely, as it introduces a new rate of 5% that will be implemented starting from April 1, 2024. This rate will be specifically applied during the initial supply stage.

Scope

The scope of taxable products that are subject to PLT, specifically alcohol and tobacco products, has not been altered in comparison to earlier laws. Nevertheless, the PLT incorporates key concepts from Article 87 of the Law on Taxation to effectively tackle and prevent tax evasion in certain situations. Individuals who engage in the production or importation of taxable products on behalf of a taxable person may be considered taxable organizations. Consequently, they will be obligated to pay PLT (Profit Loss Tax) if they fail to comply with the precise reporting obligations specified in the Prakas.