Boshe VVIP Participates In Protests On Entertainment Taxes Up To 75 Percent, PHRI Bali Proposes Employers To Postpone Tax Paying

BADUNG - Night entertainment business actors on the island of Bali, agreed to refuse an increase in entertainment taxes of 40 to 75 percent.

"That we reject the 40 percent tax increase. Cook now discotheques, karaoke, nightclubs, bars, and spas to raise taxes to 40 percent. Irrational, it doesn't make sense," said Deputy Chairman of the Association of Indonesian Hotels and Restaurants (PHRI) Bali, I Gusti Ngurah Rai Suryawijaya, Monday, January 15.

PHRI Bali will hold a national seminar related to the lawsuit for judicial review of the Law regarding the increase in the entertainment tax by 40 percent-75 percent.

"We are at the same time, there is Jogja, there is Jakarta, hold it in Bali as well, the echo will be international. We will conduct a judicial review. Then, delaying tax payments, SE Number 7 2023, to immediately carry out 40 percent. So just postpone the payment first, it happened before, we postponed the payment. So that the findings are okay. Because, it is impossible for us to increase, we will determine first 10-15 percent, until we wait for the judicial review results," said Suryawijaa.

Meanwhile, General Manager of the Boshe VVIP Club Bali nightclub, I Gusti Bagus Suwitra, said the tax increase in the range of 40-75 percent was very burdensome for business actors.

It is feared that the increase in taxes will make the death of the night entertainment business which automatically coincides with the mass layoffs of workers.

"Yes. If the mass layoffs are possible before the layoffs have closed the company first. So the layoffs are closed, yes, they have laid off themselves," he said.

His party also agreed with the proposal to postpone tax payments and carry out peaceful demonstrations to protest the increase in taxes.

"I really agree. If that's the way all my friends and friends will choose and from some figures, that might work," he said.

The Rate of Certain Goods and Services Tax (PBJT) is regulated in Article 58 of Law Number 1 of 2022 concerning Financial Relations between the Central Government and the Regional Government (HKPD).

The law, which was passed on January 5, 2022, specifically stated that the PBJT tariff on entertainment services at discotheques, karaoke, nightclubs, bars and steam/spa baths was set at a minimum of 40 percent and a maximum of 75 percent, according to Article 58 paragraph 2.

The birth of the law and derivative regulations, namely Government Regulation (PP) Number 35 of 2023, are the basis for local governments to increase PBJT rates including the spa industry, one of which is in Badung Regency, Bali, where the majority of the local revenue (PAD) is from the tourism industry.

The Badung Regency Government, for example, issued a regulation based on the law, namely Regional Regulation (Perda) Number 7 of 2023 concerning regional taxes and regional levies.

The regional regulation, which was promulgated on December 28, 2023, will take effect from January 1, 2024, applying the amount of regional tax rates specifically for entertainment services at discotheques, karaoke, nightclubs, bars and steam/spa baths of 40 percent.

Meanwhile, the previous regional regulation which has now been revoked is Regional Regulation Number 8 of 2020 which regulates the entertainment tax, the amount of tax is 15 percent.