Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Call for 50% Reduction in Hotel & Restaurant Tax.
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Call for 50% Reduction in Hotel & Restaurant Tax.

Bagus Discovery Tour's Owner Says Lower Taxes Would Raise More Money for Island's Public Coffers.


Bali News:
Click Image to Enlarge

(2/17/2008)

Commenting in a page-one article in BisnisBali, the Secretary General of the Bali Hotel and Restaurant Association (PHRI-Bali) and owner of Bagus Discovery Tours, Bagus Sudibya, has thrown his support behind a proposal to lower the current tax charged on hotel and restaurant bills from 10% to 5%.

Guest dining at Bali restaurants and hotels presently pay a 21% tax and service surcharge on all their purchases. The amount over and above the 10% tax is typically a service charge for the employees of the hotel and restaurants.

"As a member of the tourism industry, I very much support the reduction of the hotel & restaurant tax to 5%," said Sudibya. He went on to explain that the current 10% tax level is too high and places a heavy burden on the Island's hotels and restaurants, affecting both their price competitiveness and product quality.

A Mistaken Assumption: It Doesn't Really Matter

"Don't always think that the tax is a burden only borne by the customer," warned the PHRI official. He added that the high tax rate causes operators to trim their margins in order to remain competitive.

The PHRI officials feels that combined tax and service surcharge of 21% is both high and especially burdensome. Sudibya said that in other competing destinations, such as Singapore, the highest tax charged is only 13%. He hopes that the government will lower the current tax level and help promote healthy growth in the tourism sector. Sudibya insisted that if the tax were reduced, the savings and growth in business would allow product enhancements, more training of staff and more promotional activities.

What Would the Government Lose?

In response to those who fear that a 50% reduction in the Hotel & Restaurant tax would represent an unacceptable loss in state revenues, Sudibya said he is confident that total tax revenues would actually increase as sales would increase and entrepreneurs would be more inclined to be more honest and transparent in declaring their tax liabilities.

Sudibya acknowledged that the proposal to lower the hotel and restaurant tax remains at the "idea stage" and that a detailed study of the impact of lowering the tax has yet to be undertaken. The final decision to lower these taxes remains the exclusive purview of the provincial government.

Government Responds

In the edition of BisnisBali published the day following Sudibya's comments, both the Chief of Tourism for Badung and his counterpart for the Province of Bali dismissed Sudibya's suggestion, saying the current tax was set by the central government and was based on a thorough and careful formulation.

Go Figure: A Game of Political Ping Pong?

Protestations from Bali officials that the current tax rate of 10% is immutable and is, in any case, set by the Central Government in Jakarta mesh oddly with the fact that when former President Suharto tried to lower the Hotel and Restaurant tax charged in Bali in the late 1990s local officials on the Island stonewalled the Presidentís decree, saying the decision lack an implementing regulation.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

   

 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Baliís Loses Much-Loved Tourism Pioneer
Ida Pedanda Gde Ngurah Karang Ė Founder of Segara Village Hotel Dies at 87
(12/22/2014)
Fun & Sun Costs More in South Bali
Price of Waters Sports at Tanjung Benoa, Bali Increase by 30%
(12/20/2014)
Fire in East Denpasar
Fire Destroys 7 Shop Houses in East Denpasar, Bali
(12/20/2014)
Mantra for Difficult Times
Australian Mantra Hotel Group Scales Down its Plans in Tough Bali Marketplace
(12/20/2014)
Be Prepared
Bali Identifies Areas at Risk of Natural Disaster and Maps Plans to Minimize Destruction
(12/20/2014)
When Sleighs Wonít Do
Bali Airport to Operate 134 Extra Flights Over Christmas and New Year Period
(12/20/2014)
When a Bay Becomes a Quagmire
Editorial: We Support Jakarta Globe Call for President Joko Widodo to Cancel the Benoa Bay Reclamation
(12/20/2014)
4.25 Million Foreign Tourists to Bali in 2015?
Bali Seeks to Add 500,000 Tourist Visitors in 2015
(12/20/2014)
That Takes the Lot!
Baliís Tanah Lot Temple Experiencing a Record Number of Visitors Leader Up to Year End Piodalan Ceremony
(12/20/2014)
Shanghaied No More
Singaraja, Bali Immigration Office Deports 282 Foreign Workers in 2014
(12/20/2014)
Different Strokes Apply in Bali
Pendawa Beach Visitors in Bali Reminded that Sexual Activity and Swimming While Menstruating are Strictly Not Allowed
(12/20/2014)
Bali Non-Stop to Cairn, Australia
JetStar to Fly Direct Three Time a Week Cairns to Bali Flights Starting in March 2015
(12/20/2014)
All [News]!