Protests Appear In Bali, Sandiaga Reviews The Increase In Entertainment Tax Tariffs Including Spa Up To 40 Percent

Menparekraf Sandiaga Uno/ANTARA/Dewa Ketut Sudiarta Wiguna

NUSA Dua - Minister of Tourism and Creative Economy (Menparekraf) Sandiaga Uno reviewed the policy of increasing entertainment tax rates including the spa industry from 15 percent to 40 percent can be revised after receiving complaints from tourism actors in Bali.

"All policies including taxes will be adjusted so that the (tourism) sector is strong, so that this sector can create more business opportunities and jobs," said Sandiaga Uno on the sidelines of opening the Asia Pacific Tourism Conference at BNDCC Nusa Dua, Badung Regency, Bali, as reported by ANTARA, Thursday, January 11.

According to him, this effort was made because tourism and the creative economy are the main sectors in Indonesia's economic transformation considering the big role in the country's economy.

Sandiaga also understands the complaints of tourism actors after the entertainment tax rate, including the spa/vapor bath industry, rose, as happened in Badung Regency, Bali, which reached 40 percent from the previous 15 percent.

Meanwhile, on the other hand, tourism destinations including Bali are competing with other countries in Southeast Asia, including Vietnam and Thailand, after improvements to the COVID-19 pandemic.

"So the concern we can understand but don't be too angry and worried because we are working with the industry to find a solution and we ensure that quality and sustainable tourism will be prioritized," said Sandiaga.

The Minister of Tourism and Creative Economy also admitted that he had received many complaints from tourism actors either directly or through letters, including attempts to re-test orJudicial Review to the Constitutional Court (MK) regarding the rules for increasing the Rate of Certain Goods and Services Tax (PBJT).

"I have received letters, hard e-mails and legal steps that they will take, including the Judicial Review at the Constitutional Court regarding tax rates," said Sandiaga.

Meanwhile, Chairman of the Association of Indonesian Tourism Industries (GIPI) Bali Ida Bagus Agung Parta Adnyana on the same occasion revealed that the spa industry is one of the sectors affected by the policy of increasing PBJT rates.

"In our opinion, this will weaken Bali, one of which is because we have just finished the pandemic, we are competing (other countries). Our colleagues in the spa industry have conducted aJudicial Review to the Constitutional Court, hopefully this (assuming tax rates) can be postponed or spa is not included as a type of entertainment," he said.

The PBJT tariff 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 for PBJT tariffs on entertainment services at discotheques, karaoke, nightclubs, bars and steam/spa baths, is 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.

The 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.