Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Plugging the Leaks, Keeping Bali Financially Afloat
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Plugging the Leaks, Keeping Bali Financially Afloat

Editorial: Why Governor Pastika's Desire to Put Hotel and Restaurant Taxes on Line is an Idea Long Overdue.


Bali News: Bali, Indonesia, PHR, Hotel Restaurant Tax, Governor Made Mangku Pastika, on-line
Click Image to Enlarge

(8/21/2010)

Bali's governor Made Mangku Pastika is not pleased. Despite promises made last year by the island's regencies and mayoraltys to introduce an on-line reporting and payment system for the 10% hotel and restaurant tax (PHR) tacked on to every accommodation and dining tab, no visible progress towards keeping that promise has been made. In defense of their lack of movement on the issue, regency officials claim that implementing an automated reporting payment system is "problematic."

Problematic? No doubt. It has become a long-standing and increasingly embarrassing "public secret" that regency officials are readily amenable to negotiating the calculation method and payment of PHR with hotel and restaurant owners. No less dismaying, money collected in cash every time a customer stays at a hotel in Bali or dines in a restaurant is often not submitted (even at negotiated levels) to the government, but kept and used as a no-interest loan to be paid at some indeterminate time in the future. These "delayed tax payments" are little more than the misappropriation of public funds held by businesses due and payable at the time of the transaction with the visiting tourist. Billions of rupiahs in deferred PHR payments remain in arrears at any given point in time.

Government officials in Bali continue to blame a lack of tax revenues as the stumbling block for financing the Governor's much-needed programs for free health care, mandatory education to grade 12 and essential infrastructure projects. At the same time, there is little doubt that the Rp. 900 billion (US$100 million) in PHR revenues from Bali generated in 2009 is grossly under-collected, perhaps by a factor of 3-4 times. Considering that the more than 5 million foreign and domestic tourists who visit the island and the 3 million plus island residents pay this tax every time they frequent a restaurant, pub or hotel, its unfathomable to imagine that, by extrapolating in reverse, total turnover in the islands large and documented tourism sector stands at only US$ 1 billion a year. These figures just don't add up. No way. No how.

Governor Pastika, eager to get on with his ambitious plans to make the island of Bali a better place to live for his fellow Balinese, is threatening to exercise his legal right to expropriate the tax collection authority from regencies and mayoraltys and place this function under direct control of the provincial government. We hope the government will turn that threat into action and assume both its legal and moral responsibility in order to increase tax revenues that will permit much needed health and educational programs to move ahead.

As an interim and complementary step, we also suggest 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 twelve 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 neighboring business and, more importantly, with the amount of service charge paid to them.

We hope Governor Pastika will ignore the protests of those struggling to preserve their slice of ill-gotten public tax revenues and move ahead with centralization of PHR collection to the provincial level. Any protests that may result will be necessarily short-lived, especially in the face the certain, sudden and dramatic increase in tax revenues collected from each regency and city across Bali.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

       

 
Plaga Wine
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Slapping a Roaming Wrist
Noa Pardue Gets Off with Rp. 250,000 Fine for Stealing a Pair of Underwear from an Ubud Shop
(5/1/2016)
Taking Out the Garbage
PT NOEI Fired From its Management Role at TPA Suwung Rubbish Dump
(5/1/2016)
A Northern Approach to Bali
Governor to Issue Recommendation for Dwijendra International Airport in North Bali
(5/1/2016)
Solemen Fun Day at Waterbom Park
Solemen Dispenses Smiles and Fun Memories to Some of Baliís Most Downtrodden
(5/1/2016)
Saving the World, One Island at a Time
Lembongan Island Says No to Plastic on Earth Day 2016
(5/1/2016)
An Epitaph Written at Stones
Australian Teen Dies in Bali While Illegally Operating a Motorcycle
(5/1/2016)
Carmen Miranda: Hey, Thatís my Hat!
Balinese Village Build 2.5-Meter High Tower of Fruit as Offering to Monkeys at Alas Kedaton
(5/1/2016)
Be an Idol!
Open Mike Amateur Night for Aspiring Singers with the Bali Community Choir at The Onion, Sanur, Bali on Tuesday, May 17, 2016
(4/30/2016)
Sink and Win!
Emirates Airlines Sponsors Hole in One Extravaganza at Bali National Golf Resort
(4/30/2016)
Rise and Shine in Good Health
E-Series 2, 4 and 8-Kilomter Healthy Run at Pan Pacific Nirwana Bali Sunday, May 22, 2016
(4/30/2016)
Extended Education
Bali Begawan Foundation Provides Educational Opportunities to School Children from Papua
(4/30/2016)
Staying High and Dry
Bali Conduct Successful Test of Shoreline Tsunami Warning System
(4/30/2016)
All [News]!