Tourism operators in Bali are up in arms over the government’s decision to increase taxes on entertainment venues, including nightclubs, bars, and spas. The new policy, effective this month, raises the tax rate from 15 percent to as high as 75 percent. This move has sparked concern among Bali’s tourism stakeholders, who fear that it will drive away tourists and gravely impact businesses. Foreign travelers may opt for destinations with more affordable prices, putting the future of Bali’s tourism industry in jeopardy. Notably, Thailand imposes a mere 5 percent tax, while Dubai charges no tax on alcoholic beverages. Bali spa owners have also voiced their objections, arguing that spas should not be categorized as entertainment establishments. The Indonesian Tourism Industry Board plans to seek a judicial review of the tax hike. In the meantime, Bali’s tourism industry is hoping for a reprieve as they wait for the legal proceedings to unfold.
Bali Tourism Operators Oppose New Tax Increase on Nightclubs and Spas, Indonesia
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