High Rate of Hotel Tax Trigger Leakage


Bali Indonesia Tourism Industry Association (GIPI) believed that the amount of Hotel and Restaurant Tax (PHR) in Indonesia is the highest compared to other South East Asian regions so that it triggers high leakage or tax overdue.

“The amount of tax in this country is 11 percentage which is the highest compared to other countries in ASEAN such as Thailand and Singapore which cost only six percentage,” Vice-Head of GIPI Bali Bagus Sudibya stated in Denpasar.

According to him, if only the cost of Hotel and Restaurant Tax is as same as the other countries maybe the number of tax leakage could be cut. But it should be along with the online payment.

If those two things are applied, the number of tax leakage from tourism industry could be diminished.

“Those things could increase tax income because will be no more tax leakage or overdue from any businessmen in hotel and restaurant field,” he emphasized.

Sudibya explained that by applying online payment everything would be transparent and the tax potency would be known definitely.

He thought that there was other reason why the hotel management did not pay tax on time; it might because they suffered a financial loss.

He also added that so many new hotels established in the area of Island of Gods that created unhealthy price competition then triggered financial loss to some of them.

“As a result, there is possibility that the hotels suffer a financial loss so that they can’t afford the tax,’ he stated.

The Denpasar Prosecutors’ Office said that it was investigating 10 star-rated hotels in Bali allegedly involved in several tax evasion cases worth billions of rupiah. Office chief Freddy Runtu said investigators were currently questioning the management of four hotels, namely the Ocean Blue Hotel, which is allegedly

involved in a Rp10 billion tax evasion case, the Ramadha Resort Benoa (Rp6 billion), the Sandhi Pala Hotel (Rp4 billion) and the Bali Intercontinental Resort (Rp3 billion).

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