Minister Of Home Affairs: Bali Agrees To Lower Entertainment Taxes Below 40 Percent

Minister of Home Affairs (Mendagri) Tito Karnavian (Photo: Mery Handayani/VOI)

JAKARTA - The Provincial Government (Pemprov) of Bali has agreed to reduce the amount of entertainment taxes in the region. The amount of tax to be imposed is below 40 percent.

The decline in the amount of entertainment taxes follows incentives related to entertainment Goods and Services Tax (PBJT) of 40 to 75 percent. This incentive refers to Article 101 of the Law on Financial Relations of the Central Government and Regional Government (HKPD).

Minister of Home Affairs (Mendagri) Tito Karnavian explained that the Bali regional government had agreed on the amount of the entertainment tax together with business actors there.

"If they have done that in Bali, because I have zoomed in on a meeting with the new governor and the regent of walkot throughout Bali, they have had a meeting inviting entrepreneurs, entertainment venues and then they will use Article 101 to provide incentives," he said. Tito at the Coordinating Ministry for the Economy Office, Jakarta, Monday, January 29.

But unfortunately, Tito has not clearly detailed the amount of the entertainment tax in force in Bali. However, said Tito, it was agreed that it would be below 40 percent.

"How many incentives? Yes, what will be clear is below 40 percent," he said.

Not only Bali, Tito said the DKI Jakarta regional government had also planned to have discussions with entertainment entrepreneurs. Given, this area is also filled with entertainment businesses.

"DKI mereka akan mengumpulkan para penghuna untuk kira-kira yang idealnya jadi kira-kira win-win lah, kira-kirakan begitu. Tapi itu harga kan nilai kan sesuai undang-undang tetap ya, tapi akan bisa ditututunkan dengan kebijakan dari pemerintah daerah," jelasnya.

Even so, Tito emphasized that the decision of the amount of entertainment tax is in the hands of the local government. This refers to the local government's initiative on special considerations, or requests from employers.

"This means that there can also be direct from local governments to provide them, they are words 'or' in the law, yes, there are points that can be submitted by entrepreneurs as well, there are 3 points of local government in order to encourage the acceleration of regional development," he said.