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Bali News

Bali's Hotel & Restaurant Tax Revenues to Dive

Badung Officials Predict a 23.55% Drop in Bali's Hotel & Restaurant Tax Takings in 2006.


Bali News: Bali's Hotel & Restaurant Tax Revenues to Dive
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(1/9/2006)

Badung regency officials are expecting the current downturn in business will persist well into 2006, predicting that the 11% tax levy added to restaurant and hotel bills will net government coffers some 23.55% less than the amount collected in 2005.

Badung is Bali's southernmost regency and home to the majority of Bali's major hotels.

The Chairman of Commission C of the Regional Parliament Badung Regency, I Wayan Suwaedana, is estimating that total Hotel & Restaurant Tax (PHR) intake will decline to Rp. 211 billion (approximately US$21 million), down from the estimated Rp. 276 billion (approximately US$26.6 million) collected in 2005.

Of the projected Rp. 211 billion budgeted PHR revenues for 2006, tax officials expect that Rp. 193 billion will be generated by hotels operating in the Badung regency and the balance from local restaurant operations.


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