Spa Tax Protests Rise To 40 Percent, PHRI Bali Wants To Discuss With Menparekraf

Chairman Of PHRI Bali Tjok Oka Artha Ardhana Sukawati/PHOTO: Dafi-VOI

DENPASAR - The Indonesian Hotel and Restaurant Association (PHRI) Bali has prepared a discussion forum to discuss increasing spa taxes from 15 percent to 40 percent, by presenting the Minister of Tourism and Creative Economy Sandiaga Uno to strengthen the reasons so that the regulation does not apply.

Chairman of PHRI Bali Tjok Oka Artha Ardhana Sukawati said this discussion aims to produce a spa business study or what is typical of the Island of the Gods is that the Balinese Spa is not appropriate to be included in the entertainment category in the Specific Goods and Services Tax (PJBT), which is currently set to be at least 40 percent.

"Later we will hold a discussion forum involving universities, constitutional law experts, then those who understand spa, business actors, we will also meet the Acting Governor and Minister of Tourism," he said.

Tjok Ace, as he is known, said that in the discussion a study would be given that they could bring to the Constitutional Court so that a judicial review would be carried out, because the PBJT increase rule has been stated in article 58 paragraph 2 of Law Number 1 of 2022 so that if it is not revised, spa/vapor baths must comply with the 40 percent tax.

"This is an extraordinary increase. Entered by an entertainment business, whether we should change the name of the spa in Bali to traditional medicine is not easy either. We think it should be straightened out, spa in Bali is not entertainment, we have prepared a discussion group for the Menparekraf law because it is not included as an entertainment business," he said.

PHRI Bali as the association that oversees the Bali Spa Wellness Association itself feels that it has never been involved in the formation of this rule, so they are surprised because all this time spa has been in the health category.

The reason Balinese spa is right in the health category is because in Bali spa businesses use regional potential as complementary ingredients such as lul and boreh which comes from historical records above the launch.

According to the Chairman of PHRI Bali, if it continues to be run, it will have an impact on the tourism industry that is starting to rise, especially spas that are building images in the eyes of the international community.

"If this word is included in entertainment, it will feel uncomfortable, even though this spa is health, not entertainment, forming a stigma, it will be a pity for our younger siblings who work as therapists," said the Deputy Governor of Bali for the 2018-2023 period, quoted by Antara.