Bali's Entertainment Turmoil Due To 75 Percent Tax, Acting Governor Encourages Spa Entrepreneurs To Apply For Fisjal Instentives

Acting Governor of Bali Sang Made Mahendra when receiving the PHRI Bali audience and BWSA discussed the spa tax in Denpasar, Monday (15/1/2024). BETWEEN/Ho-Pemprov Bali

DENPASAR - Acting (Pj) Bali Governor Sang Made Mahendra Jaya advised entrepreneurs in the Association of Indonesian Hotels and Restaurants (PHRI) and the Bali Spa & Wellness Association (BSWA) to apply for fiscal incentives, this suggestion emerged in the aftermath of employers' complaints regarding the 40-75 percent entertainment tax policy.

Mahendra admitted that he agreed that the growing Balinese Spa was related to the development of potential local resources, not in accordance with its position in the implementation of the Law Number 1 of 2022 tax as an entertainment business.

Therefore, the Acting Governor of Bali supports spa entrepreneurs who submit judicial reviews to the Constitutional Court, but these entrepreneurs are also encouraged to apply for fiscal incentives which will later be regulated in regional head regulations.

"This step is regulated in Article 101 of Law Number 1 of 2022 which states that governors/regents/mayors can provide fiscal incentives to business actors in their regions in supporting investment facilities policies," he said, Monday, January 15.

"Judicial road review, this fiscal incentive application also needs to be taken. Later I will encourage district/city governments that have the authority to do so," continued the number one person in the Bali Provincial Government.

This suggestion arose when the Acting Governor of Bali held discussions with PHRI Bali and BSWA regarding objections if the spa business entered the imposition of entertainment taxes with a tax burden of 40-75 percent.

Chairman of PHRI Bali Tjok Oka Artha Ardhana Sukawati or Cok Ace said the Balinese Spa on the Island of the Gods has peculiarities and has been recognized by world tourism organizations as an effort in the health sector.

The former Deputy Governor of Bali explained that the Balinese Spa was formed in 2002, at that time it was present to ward off the negative stigma of massage parlors, until finally its members continued to grow and take shelter under PHRI Bali.

"In line with the addition of members, BSWA continues to strive to improve service quality through human resource training so that spa businesses in Bali get many awards," he said, quoted by Antara.

Currently, BSWA has recorded that 12 thousand people have joined as therapists, even Cok Ace received information in Poland that the Bali therapist is very famous for 337 therapists from the Island of the Gods.

This spa business is unique because in its development it carries a mission to extract the local boreh potential of Bali or the use of spices as its lull.

They objected to the imposition of entertainment taxes and have submitted a judicial review, as well as in the near future PHRI Bali and BSWA will hold discussions on the pros and cons of this law, attended by the Minister of Tourism and Creative Economy and the Minister of Finance.