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Water is Not for Free

May Hotels and Villas in Gianyar, Bali Illegally Avoiding Subterranean Water Taxes

(6/22/2014) NusaBali reports that many hotels and villas in the Gianyar regency of Bali have avoided paying taxes for tapping into the Island’s water table through unauthorized wells.

The Subterranean Water Tax (Pajak ABT) is applied to any business or dwelling in Bali that uses ground water.

Reports suggest that only small portions of well owners are paying their ABT Tax, blamed on the inefficiency or venality of tax officials.

Abuse of the system and the uncontrolled drilling of ground water are feared by environmental groups to have a lasting detrimental effect of the Island and its mounting water deficit.

Meanwhile the head of Regency’s Revenue Office for Gianyar, I Ketut Anwar, is pledging that the regency will be more proactive in collecting ABT taxes and close businesses using subterranean water illegally.

Prior to 2010, revenue from ABT taxes were collected by the provinces, but are now collected by Bali’s regencies and municipalities.

In 2103 ABT taxes from starred hotel in Gianyar totaled Rp. 1.4 billion (US$122.000).

The hotels that were leading payers of ABT Tax in 2013 in Gianyar were:

The Gianyar Regency’s ABT Tax target for 2014 is Rp. 3,062,366,398.