National Tourism Tax in Addition to Bali Tax

In the Indonesian government, they are considering a tourist tax for visiting the country. It's not about the 150,000 IDR taxes currently paid by Bali guests. The money from these taxes only goes to one province's treasury. This time, if the project is approved, the tax will apply to everyone arriving in Indonesia. Consequently, the revenue will be distributed among regions nationwide.
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Authorities propose including the tax in the airfare, which is convenient as there won't be a need to figure out how to pay it separately. Currently, doing so isn't so straightforward.
Officials claim this initiative will help raise more funds for tourism development, increasing the chances of the tax being implemented.
This project has raised concerns in Bali's tourism sector. The Chairman of the Badung Hotels and Restaurants Association, I Gusti Agung Rai Suryawijaya, stated: "We've already implemented a 150,000 IDR fee for foreign tourists in Bali. These fees are used for three purposes: preserving the customs, traditions, arts, and culture of the Balinese people, maintaining the culture and natural environment, which is a tourist attraction of Bali, as well as improving the quality of tourism services. This concept is still ongoing in Bali. Now, the central government is discussing the introduction of a nationwide tourist fee. If this is implemented in Bali as well, it will give the impression that tourists are being charged double." He also added: "If the revenue distribution is based on the number of incoming tourists, that's good. We want the distribution of funds from the tax to be proportional and fair."
The law is already facing objections, especially regarding its integration with airfares. For instance, House of Representatives Commission member Sigit Sosiantomo noted that not all passengers fly for tourism purposes. Another parliamentarian, Suryadi Jaya Purnama, stated that implementing the levy could violate the Aviation Law No. 1 of 2009. He pointed out that if the tourist levy is indeed implemented by the government, there are concerns that it could lead to decreased aircraft occupancy. He believes that the Ministry of Tourism should take a more creative approach to finding funds for industry development, suggesting that such levies should be collected directly from tourist activities.
The president of the country's leading airline, Garuda, also opposes the law. Irfan Saputra stated that he disagrees with the government's plan to introduce tourist levies on airfares. According to him, imposing tourist levies on airfares will result in price increases and add burdens to passengers. "Ultimately, they (passengers) will accuse the airline of arbitrarily raising ticket prices."
Minister of Tourism and Creative Economy Sandiaga Salahuddin Uno asked the public not to worry about discussions on tourist levies through airfares. He assured that the government will not burden travelers, who already complain about high ticket prices. However, a decision on the tax has not yet been made.
Sources: bisnisnusabali
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