Indonesia's Hospitality Industry Demands Review of Controversial Entertainment Tax Law
PHRI calls for a judicial review of a law imposing substantial increases in entertainment taxes.
jakartaglobe.id
These are the taxes mainly for entertainment venues such as nightclubs, karaoke lounges, bars, and spas. The tax rates have been adjusted to a minimum of 40% and a maximum of 75%, representing a significant increase from the previous range of 10% to 35%. Typically, regional governments seize this opportunity to generate more revenue by implementing the maximum value within the bracket. Therefore, be prepared to see an increase from 35% to 75% if these changes are implemented. Keep in mind, this is not the PHR (Hotel and Restaurant Tax) known as PB1, which is still 10%.
The increase might be because it is close to the General Election (GE), where this party wants to please people, including clerics with a lot of followers who might want to see places like this disappear.
The current Minister of Tourism and Creative Economy Sandiaga Uno was from the United Development Party (PPP), known as the 'Kaaba Party'. He was also previously proposed as a vice-presidential candidate from PPP.
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