BSWA Meet The Acting Governor of Bali, Expresses Objections to the Imposition of Entertainment Tax of 40-75 Percent
- 15 Januari 2024
- 20:01 WITA
- News
DENPASAR , Balitopnews.com - Entrepreneurs who are members of the Bali Spa & Wellness Association (BSWA) which is under the auspices of PHRI Bali expressed their objection to the imposition of an entertainment tax of 40 - 75 percent as regulated in Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Government (HKPD). This objection was conveyed by the Chairman of BPD PHRI Bali, Prof. Tjokorda Oka Artha Ardhana Sukawati (Cok Ace) who came to meet The Acting. Governor of Bali S.M Mahendra Jaya with the management of BSWA Bali, Monday ( January 15, 2024)
Chairman of PHRI Bali Cok Ace underlined the mandate of the law which includes steam bathing/spa businesses as entertainment. Because according to him, spas that are developing in Bali are unique and have been recognized by the WTO as businesses in the health sector. The man who has served as Chairman of PHRI Bali for four terms then explained the origins of the formation of BSWA which accommodates Spa & Wellness entrepreneurs on the Island of the Gods. Formed in 2002, this organization exists to dispel the negative stigma of massage parlors. When it was first formed, BSWA Bali had 13 members and continues to grow and has now reached 185 members. "In line with the addition of members, BSWA continues to strive to improve service quality through HR training so that Spa businesses in Bali win many awards," he said.
The Vice Governor of Bali for the 2018-2023 period added that the Spa business that is developing on the Island of the Gods is unique because in its development it also carries the mission of exploring and developing the local potential of 'Bali Boreh'. "By utilizing local potential and wisdom, our Spa is very popular with tourists," he added.
In line with its development, this business sector absorbs more and more workers and BSWA Bali has 12 thousand therapist members. Even during a visit to Poland, Cok Ace received information that 337 Balinese therapists were working in that country. "This indicates that this business absorbs a lot of labor and boosts Bali's GRDP," he added. In another part, this Puri Ubud figure also refers to the WTO definition which states that Spas developing in Bali are linear with health businesses, not entertainment. "Because spas in Bali are different from those developing outside," he explained. On that basis, his party expressed objections that Spa businesses in Bali were subject to an entertainment tax of 40-75 percent. BSWA Bali has also made efforts to submit a judicial review of Law Number 1 of 2022. "We submitted a judicial review on January 5 and it was recorded that 22 applicants had been registered, including entrepreneurs from outside Bali," he said. In line with the process of submitting a judicial review, in the near future PHRI and BSWA Bali will hold an FGD discussing the pros and cons of implementing Law Number 1 of 2022 which is planned to present the Minister of Tourism and Creative Economy and the Minister of Finance of the Republic of Indonesia.
Regarding BSWA's objection, Cok Ace really hopes for support from The Acting. Governor of Bali. The Acting Governor of Bali Mahendra Jaya can understand the concerns of BSWA and PHRI Bali regarding the implementation of an entertainment tax of 40-75 percent, which includes steam bath/spa businesses. In agreement with the Chairman of PHRI, Mahendra Jaya, he also believes that the spa development in Bali is related to the development of local resource potential. Therefore, he respected the legal steps taken by BSWA Bali by submitting a judicial review of Law Number 1 of 2022.
However, in parallel with this step, Mahendra Jaya suggested that PHRI and BSWA Bali submit a request for fiscal incentives which would later be regulated in a Regional Head Regulation . According to him, this step is regulated in article 101 of Law Number 1 of 2022 which states that governors/regents/mayors can provide fiscal incentives to business actors in their regions to support easy investment policies. "Judicial review of the process and application for fiscal incentives also needs to be carried out. "Later I will encourage the district/city governments who have the authority to do that," he said.
The meeting with PHRI Bali was also utilized by The Acting. Governor Mahendra Jaya to ask for support in implementing levies for foreign tourists which will come into effect on February 14 2024. PHRI Bali's support is really needed because the Bali Provincial Government will intensify the levies when guests arrive at the hotel where they are staying. Two other payment mechanisms, foreign tourists are directed to make payments before arriving in Bali via the Love Bali application and payments at the airport.
At the meeting, PHRI Bali Chair Cok Ace was present along with PHRI Secretary General Ferry Markus, BSWA Trustee Regina Winkler, BSWA Deputy Chair Feny Sri Sulistiawati and a number of other administrators. While The Acting Governor Mahendra Jaya was accompanied by the Head of the Tourism Service, Tjok Bagus Pemayun and the Head of the Bali Bapenda, I Made Santha. (Rls/Btnc)
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