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Asking for a Rebate on Taxes

Jakarta Hotel and Restaurant Association Asks for Share of Taxes for Use in Tourism Promotion.

(9/20/2004) The Jakarta Chapter of the Indonesia Hotel & Restaurant Association (PHRI) has formally requested a 1-2% rebate of the total taxes paid by its members to help pay for promotion, marketing and educational projects beneficial to Jakarta's tourism.

According to Harisantoso, the Chief Operating Officer of the PHRI JKT, recent changes in the rules supporting regional autonomy permit the Government to recycle taxes back to the community for worthwhile projects, such as the promotion of tourism to the Nation's Capital.

Tax collections from the hotel and restaurant sector in Jakarta is targeted at Rp. 725 billion (approximately US$ 80.5 million) for 2004. 2% of that amount, if set aside for promotion, would provide US$ 1.6 million to boost the marketing of Jakarta as a destination.

Bali Next?

Bali tourism figures will be watching developments closely to see if the PHRI move is successful. In 2001, despite the impact of 9/11, the Bali Government collected over US$ 30 million in hotel and restaurant taxes.