Outspoken Hotel Entrepreneurs In West Java, Ask For Income Tax Exemption, VAT, To PBB

Illustration. (Photo: Unsplash)

JAKARTA - The Indonesian Hotel and Restaurant Association (PHRI) of the West Java Regional Leadership Agency asked the government to provide assistance and relaxation of permits so that hotel and restaurant entrepreneurs can survive to support thousands of workers related to the impact of the COVID-19 pandemic on the hotel and restaurant sector.

"The tourism sector has been a source of high income for local governments. The economic cycle of the existence of hotels and restaurants is also able to keep an area growing. Therefore, we ask the central and regional governments to provide a number of assistance and relaxation of regulations so that this service sector can survive in the middle of the world. this pandemic," said West Java PHRI Chairman Herman Muchtar in a press release, quoted from Antara, Sunday, July 25.

The assistance and relaxation of the permit relaxation can be in the form of a temporary suspension of tax burden payments, ranging from PHRI taxes, PPh, VAT, PBB to better conditions and temporary suspension of the imposition of PLN taxes.

He said the COVID-19 pandemic continued to kill the tourism industry in various regions including West Java and entering the second year of the pandemic, the tourism and creative economy sectors, which should be the backbone of PAD, were actually affected the most, especially the Hotel and Restaurant industry in West Java. .

To suppress the rate of increase in cases of the corona virus, he said, the government carried out various instruments by implementing various new rules such as Emergency PPKM and PPKM levels 3 and 4.

During this pandemic, he said, the hotel and restaurant business was getting worse, such as the cancellation of orders, both rooms and planned activities, and the return of down payments to consumers.

According to him, the decline in the average hotel occupancy rate is currently below five percent as of July 2021 and the closure of malls or shopping centers has forced the complete cessation of restaurant or restaurant operations for those located in these malls.

"So from these points there has been a drastic decrease in hotel and restaurant income in West Java, almost to zero," he said.

He said this had an impact on the company's burden, starting from employee salaries, bills for PLN, BPJS, taxes and others that could not be paid.

Therefore, he said, PHRI Jawa Barqt proposed steps and government support so that this industry could survive during the COVID-19 pandemic.

He said West Java PHRI also hopes that there will be licensing policies such as MICE activities in hotels with a maximum capacity of 50 percent of the room while still implementing health protocols.

Then grant dine-in permits to restaurants, restaurants and cafes with a maximum of 50 percent and operational until 21.00 WIB by tightening health protocols.

"And we also hope that the government can open access road closures for the smooth access of tourists visiting destinations," he said.