The tourism industry in Bali is concerned about the Indonesian government's massive increase in the amusement tax. This tax has been raised nationwide from the current 10 to 35 percent to 40 to a maximum of 75 percent, as reported by the newspaper "Bali Sun" on Thursday. The so-called Goods and Services Tax for the entertainment sector (PBJT) has been in effect since January for discotheques, karaoke bars, nightclubs, bars, and spas - and is added to the bills of tourists.
"Undoubtedly, price-conscious Bali fans will now be looking for alternative holiday destinations," the newspaper wrote. This is because starting from mid-February, the government will also impose a tourist tax that every foreigner must pay upon entry. 150,000 Indonesian rupiahs (approximately 9 euros) will be due, in addition to the 500,000 rupiahs (30 euros) for a 30-day visa. The "tourism tax" also applies to children. Those who take a side trip to neighboring islands such as the Gili Islands, Lombok, or Java will have to pay again upon returning to Bali. Up to 70 percent of the funds from the tourism tax are intended to be used to address the island's waste management problems.
Reverse laws in Thailand
The chairman of the Indonesian Hotel and Restaurant Association, Hariyadi Sukamdani, called for a judicial review of the law to increase the amusement tax. He said that the affected businesses had been excluded from the legislative process. "We have no choice but to file a lawsuit with the Constitutional Court because our colleagues in Bali are already feeling the impact," he was quoted as saying by the "Jakarta Globe" newspaper.
Experts have warned that Bali could now lose visitors, especially with a view to its competitor, Thailand. The government in Bangkok gave the green light at the beginning of the year for a drastic reduction in taxes on alcoholic beverages and entertainment venues. Taxes on wine as well as on entertainment venues are to be reduced from ten to five percent. Thailand is currently taking numerous measures to boost tourism after the corona pandemic.