The continuing COVID-19 Pandemic has caused a sudden and drastic reduction in the collection of Hotel and Restaurant Taxes by the Regency of Badung. As reported by NusaBali, during the first four months of the year had collected only Rp. 996.895.194.275 or 20.93% against targeted revenues of 4.760.834.664,440 for all of 2020.
Bali’s Missing Tax Base
“Almost all taxable hotels and restaurants have asked that their tax bill be deferred. We can understand their situation caused by the absolute lack of tourism visitors.” – I Made Sutama, Badung Regency Official
The tax base of the Badung Regency has particularly felt the impact of COVID-19 with the overwhelming share of tax revenues generated from the badly hit tourism sectors dependent on hotel and restaurant tax collection.
A spokesman for the Regency, I Made Sutama, complained that Hotel and Tax Revenues have almost ceased to exist. Adding: “Almost all taxable hotels and restaurants have asked that their tax bill be deferred. We can understand their situation caused by the absolute lack of tourism visitors.”
Sutama said a few restaurants continue to operate, but they are limited in number with a minimal number of customers. Explaining: “Some restaurants are still in operation and are paying their taxes, but the amount of tax is minimal.”
Through the end of April 2020 Badung had enjoyed the following revenue sources:
- Hotel Taxes Rp 607.559.712.338
- Restaurant Taxes Rp 196.259.602.437
- Entertainment Taxes Rp 30.940.812.817
- Parking fees Rp 9.058.707.067
- Sign Taxes Rp 355.478.733
- Building and Property Taxes Rp 6.166.888.197
- Fees for the management of Buildings and Lands Rp 68.410.190.294
- Street illumination Taxes Rp 54.938.320.962
- Tax for Groundwater Exploitation Rp 23.212.321.989
- Mineral Right Taxes Rp 14.537.500
To reduce the burden on taxpayers in the Badung Regency during the Pandemic providing six-month of tax relief to companies requesting a grace period. Also, no penalties for late tax payments are being applied commencing from March 2020