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From Ashes to Taxes

Bali Accommodation Owners Seek Tax Relief and Delayin Minimum Wage Hikes Until Mount Agung Volcanic Activity Subsides

Bali News: Bali, Indonesia, Mount Agung, Hotel and Restaurant Tax, Tax Relief, Minimum Wage Levels
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Accommodation operators in the Regency of Badung in Bali are calling on the government for a reduction in the Hotel and Restaurant Tax (PHR) during the current downturn in business cause by the volcanic activity of Mount Agung.

As reported by, the request for a PHR tax break is prompted by the historically low occupancy rates following the eruption of the Mount Agung volcano.

In addition to asking for tax relief, the accommodation providers have also requested that any plans to increase the minimum wage levels in the Badung Regency be postponed until the current crisis resolves.

Among those calling for a tax reprieve was the secretary of the Bali Villa Association, Yoga Iswara, who said on Thursday, December 14, 2017, “Because the situation of tourism is in the current state, businesses need lower taxes from the government

Iswara defended the request for a tax cut claiming hotels were often giving free service to people stranded during the airport closure. He also joined the chorus of accommodation owners imploring that the government delay any increase in the minimum wage level for the Regency of Badung for 2018.

Later, Ramia Adnyana of the Indonesian Hotel General Manager Association (IHGMA) echoed the call for a reduced tax burden until the business climate returns to normal. Adnyana said, reduce the tax from 10% to 7% or something, anything will help.”

The chairman of the Indonesian Hotel and Restaurant Association in Bali (PHRI-Bali), IGN Rai Surya Wijaya said that hotel occupancies continue to plummet due to the continuing volcanic activity on Mount Agung. Wijaya said that Bali is approaching high season with occupancies running at only around 20%. He said his organisations’ members were now doing all in their power to return occupancy to normal levels.

On a governmental level, negotiations are underway with airlines flying to Bali and foreign governments are being asked that travel alerts for Bali adopt a more moderate tone. At the same time, the provincial government of Bali has put in plans to reduce inconvenience to travellers should they be momentarily stranded due to airport closer.

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