Investors to Close Villas over Taxes

BADUNG ~ Hundreds of villa owners in Badung regency have threatened to cease operation in December if the government refuses to make revisions in the tax regulations.

Head of Bali Villas Association Ismoyo Soemarlan said that the villa owners have demanded that the government set a more proportional tax and also to improve their service to the investors.

He said the current tax structure was considered too high, adding that officials had inaccurately measured the properties, thereby resulting in increased tax liability.

“A member reported that he was asked to pay tax of Rp2.5 billion (US$274,112) while his villa had cost only Rp5 billion to build,” he said, adding that tax officials often measured a property without referring to the owner’s documents which resulted in inaccurate data.

To support their demands, many villa owners have agreed to close the villas during the next peak season, which will coincide with the influx of thousands of delegates arriving for the United Nations Climate Change Conference.

“At the moment, hotels are fully booked. Therefore many guests will be directed to the villas. If the villas are closed, there will be no place for guests to stay. I hope then the government will be forced take action regarding our problem,” said Soemarlan.

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