Local Governments In Bali Simultaneously Process Of Submission Of Spa Business Fiscal Incentives

Acting Governor of Bali Sang Made Mahendra Jaya during a discussion about fiscal incentives for spa businesses in Denpasar, Bali, Saturday (27/1/2024). BETWEEN ANTARA/Ho-Pemprov Bali

DENPASAR - Regional Governments of Regencies/Cities throughout Bali agreed to process the application for fiscal incentives from the spa association, after discussing with them and supporting the recovery of fitness tourism on the island of the Gods.

"As an effort to support the ongoing recovery of Bali tourism, we are in the process of fiscal incentive policies to support the ease of investing. Hopefully, our tourism recovery will be better," said Acting Governor of Bali Sang Made Mahendra, who led the discussion between the spa association and the district/city government., Saturday, January 27.

Sang Made admitted that from the start he agreed that spas were fitness activities by utilizing local potential, while Law Number 1 of 2022 was actually included in the entertainment category which was deemed inappropriate.

As is known, Law Number 1 of 2022 concerning Financial Relations between the Central Government and the Regional Government (HKPD) regarding the government regulating tax rates for five entertainment services: karaoke, discotheques, bars, and spa/vapor baths by 40 percent to 75 percent, this is then what has disturbed the spa association, which has been promoting the characteristics of the Balinese Spa.

"We, of course, understand this, especially since we have just risen after the COVID-19 pandemic. So let's go through this meeting with the same perception," he said.

In the meeting, each representative of the district/city government and the association present were given the opportunity to express their hopes and input, until it was finally agreed that business actors would submit fiscal incentive policies to the government where they were trying.

The Bali Provincial Government has known that the association that oversees the spa service business has submitted a judicial review to the Constitutional Court regarding the enactment of the HKPD Law, but according to the Acting Governor, the process will take a long time.

For the common good, he suggested that submitting a fiscal incentive policy application as an anticipatory step should be implemented immediately, because the HKPD Law itself has been in effect since January 5, 2024.

With this application, officials, in this case regional heads, both governors and regents/mayors, have the right to provide fiscal incentive policies in accordance with the regulatory space in Article 101 of the HKPD Law.

Regional heads can set tariffs lower than 75 percent or even lower than the minimum limit of 40 percent. This is the regional head's policy, with considerations, among others, to support and protect micro and ultra micro enterprises, support the policy of achieving regional priority programs or national priority programs," he said.

With this agreement between the government and business actors, Acting Sang Made Mahendra then asked the district/city government to immediately take care of regional head regulations related to the intended fiscal incentive policy.