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RESULTS OF THE IMPACT OF THE INCREASE IN TAX RATE ON TOURISM SECTOR

THE INDONESIA’s Ministry of Tourism and Creative Economy presented the results of Tourism Ministry regarding the impact of the increase in entertainment tax on the tourism sector.

According to the Minister of Tourism and Creative Economy, Sandiaga Uno at the Sapta Pesona Building, Central Jakarta, Monday (02/05), 2024, said that this temporary study also involved various parties including the National Research and Innovation Agency. From the results of this interim study, that the Ministry of Tourism and Creative Economy supports the Coordinating Ministry for the Economy’s proposal regarding the consideration of a tax reduction of 10% of PPh for the tourism sector.

“From the government side, we have submitted recommendations, namely providing incentives, the importance of maintaining investment stability and continuity in organizing events. The higher the tax rate, the lower the interest of investors in the tourism sector, including in organizing events, so this needs to be considered. Don’t let there be a reduction in the workforce in the tourism and creative economy sectors,” he said.

He also explained that Bali Province together with the district and city governments had held a coordination meeting and agreed to issue a fiscal incentive policy through Regional Head Regulations (Perkada).

“And hopefully the others will follow, Labuan Bajo too, so that the percentage is adjusted to the conditions of local districts and cities and determined no later than mid-February 2024,” Sandiaga remarked.

He added that I also support the removal of spa businesses from the entertainment industry classification. Because we go to the spa for fitness, not entertainment, that’s what we hope for, so friends, please support us. [traveltext.id]