Hotman Paris 'Pimpin' Rejection Of Bali Entertainment Entrepreneurs Rejects Taxes To Increase By 75 Percent, Asks Jokowi To Issue Perppu

Hotman Paris Hutapea/PHOTO: Dafi-VOI

The famous lawyer Hotman Paris Hutapea asked President Jokowi to issue a Government Regulation in Lieu of the Law (Perppu) regarding the law that regulates an increase in entertainment taxes of up to 75 percent

"The best strategy is, if this is a very big pressure, Bali will move now so that President Jokowi issues a Perppu, as he did during the Job Creation Law," said Hotman, during a discussion with night entertainment business actors in Tibubeneng Village, Badung, Bali, Monday, January 15.

Hotman Paris is worried that the judicial review of the Financial Relations Law between the Central Government and the Regional Government (HKPD) will not be effective in the results.

"Afraid later, the Constitutional Court said that this is the right of the DPR to make decisions with the government. There must be that in the Basic Law. So the judicial review can (but) the results are not certain. So, now while it's before February 14, move everything so that the Perppu is out. That's the best way first. If the Perppu is out, the Constitutional Court will be smoother," he added.

Bali, said Hotman Paris, must be the golden child of tourism in Indonesia. The government is asked to pay attention to the sustainability of the tourism economy of the Island of the Gods.

"We have lost to Thailand and Dubai now number one. Because this is a very strategic industry, it can be linked to national interests and interests. On that basis, Mr. Jokowi immediately issued a Perpu not to impose a tax of 40-70 percent for entertainment. Because, there is not a single country in the world that imposes an entertainment tax of up to 75 percent," he said.

It is known that the Specific Goods and Services Tax Tariff (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.

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.