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Who’s not paying their taxes in Bali?
Bali Update (www.balidiscovery.com) has joined local media in calling for an end to “malfeasance and manipulation in the collection and payment of Bali’s hotel and restaurant tax “, labeling it as “an embarrassing public secretâ€.
Local hoteliers and restaurants owners are accused by local media of withholding the 10 percent government tax they collect from customers,
It has been reported that recent complaints from tourism committee delegates to the Bali House of Representatives has prompted the Bali governor to renew his demand for an acceleration of the introduction of an on-line hotel and restaurant (PHR) tax system.
The governor has expressed his disappointment that promises made to implement an on-line PHR collection system remain unfulfilled.
He roundly condemned the local regents who, on the one hand, have freely admitted the need to introduce an on-line PHR payment system to reduce financial leaks while, on the other hand, have offered no viable explanation for their failure to comply with the governor’s directive to go on-line.
As an interim and complementary step, Bali Update suggests that much of the blatant malfeasance currently surrounding the collection of much-needed PHR could be eliminated through transparency.
“To that end, we’d like to see a major newspaper in Bali print a special insert section once every year listing all restaurants and accommodation providers and their PHR totals for the past 12 months.
“Such a step would immediately restrict the ability of officials to negotiate tax bills with business owners.
“Moreover, competitive and often proud local entrepreneurs would find it humiliating to see their under-stated tax payment total sitting side-by-side with competing business paying much more.
“Such a list would also automatically deter malfeasance by allowing restaurant and hotel employees to compare their employer’s declared turnover with neighbouring businesses and, more importantly, with the amount of service charge paid to them.â€
Ian Jarrett
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