The Acting Governor of Bali, Sang Made Mahendra Jaya, has told reporters that he is considering introducing a fine for tourists who fail to pay their Bali Tourism Tax Levy fee.
The fee, which is charged at IDR 150,000 per person, is mandatory for all international travelers and holidaymakers visiting the province.
Acting Governor Jaya and leaders at the Bali Tourism Office have been open about the fact that they are struggling to ensure that all eligible tourists are making their Bali Tourism Tax Levy contributions.
Current data shows that upwards of 60% of eligible international arrivals are failing to do so.
It is believed that some people are intentionally dodging the fee, while many others simply are unaware that this policy has been introduced.
The legislation came into effect on the 14th February 2024, and while officials have conducted big marketing campaigns and worked directly with travel agents, tour providers and the hospitality sector, tens of thousands of tourists claim they are unaware that the new Bali Tourism Tax Levy is a legal requirement.
The Bali Tourism Office has been conducting spot checks on tourists at top cultural attractions on the island twice a month. If tourists are unable to show their QR-code voucher as proof of payment are requested to make their tax payment on the spot.
Though there are currently no fines or criminal ramifications for not paying the tax, which is a legal requirement, the Acting Governor feels that there should be greater consequences for tourists who fail to pay their way.
Acting Governor Jaya has told reporters that tourists who are caught having not paid their Bali Tourism Tax Levy could face ‘minor criminal sanctions.’
A review of the policy is currently underway as political leaders and tourism stakeholders on the island have proposed that the fee be increased to USD 50 per person. Acting Governor Jaya says that everything is to be investigated.
He explained, “I hope that in the Regional Regulation, there will be sanctions for tourists who do not pay fees. For example, fines or penalties. Minor criminal acts.”
He did not, however, outline what those criminal actions would look like. Currently, the legislation states that tourists must pay their fee only before leaving the country, so if tourists are unable to show their QR-code voucher, they can simply say that they have not yet paid their contribution.
To enforce legal sanctions for not paying the Bali Tourism Tax levy would require the policy and supporting legislation to be updated.
Acting Governor Jaya added, “It is still being discussed, the increasing the levy rate for foreign tourists by 50 US dollars; there are many things we have to improve. Including the need to revise the regional regulations to provide incentives or wages to help.”
The Bali Tourism Tax Levy has already generated over USD 7.1 million in revenue since the policy came into effect.
Even with only 40% of tourists making the contribution, this is a sizeable income for the Bali Provincial Government to work with.
However, Acting Governor Jaya and others from the Bali Tourism Office have been unable to outline precisely how these funds will be spent.
While the annual budget will be released later in the year, and the funds will be allocated to specific projects at that point in time, there have yet to be any specific indications from leaders as to how these funds will be used.
The policy and the marketing campaign around the Bali Tourism Tax Levy have always stated that funds will be used to ‘nurture nature,’ ‘conserve culture,’ and improve tourism infrastructure on the island.
Acting Governor Jaya’s plans to introduce criminal sanctions for those found to be dodging the tax is backed by the Deputy Chair of PHRI Badung, I Gusti Ngurah Rai Suryawijaya.
He told reporters, “So far, the levies have not been maximally implemented. Before carrying out sanctions, we also need to improve and review cooperation with several stakeholders.”
He wants to see an improved QR-code voucher inspection system put in place and make it easier for tourists to pay before they land in Bali.
“If necessary, before they arrive in Bali, they will try to pay. And this requires cooperation with the government, both with the Consul General abroad and with the Ambassador.”
Suryawijaya added, “First, we want to review the cooperation with all stakeholders. Second, we will think about administrative sanctions.”
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Firechef
Sunday 30th of June 2024
Wonderful , fines on top of the blackmail tax! What's next, a mask measuring the polluted Bali air we breathe and charging a tax for this privilege?
J West
Friday 28th of June 2024
Start gining the upcountry villagers for throwing their trash bags into the ravines and rivers. If you stop the illegal trash dumping in dry season it won't be so bad for beaches when rain comes again. Get ahead of this Bali. Tourist fines should not be the focus.
M
Friday 28th of June 2024
I'm happy if I know my paid taxes are used to improve the island, but at the current state I'm just disappointed to see that all our money is disappearing in somebody's pockets. Bali isn't doing better from year to year. Especially the South experience a worsening year after year. Meanwhile there are some doubtful leaders and politicians which are stating the money generated here should be used also for 'balinese' outside the island. And even the leader is telling they don't wanna disclose currently how the tax revenues will be used... I got chills on my back. Please leaders, don't look at your 4 walls, don't expect Bali being the backyard of rich Bule or orang Java, just look not so far to Phuket, how our beloved Bali should improve. They got their problems too, but they did well over the years, you can easily walk up the whole cities and towns (yes there are working walkways and even bikeways, there's no massive traffic congestion because almost every major street has 2 lanes. There's no garbage on the street (maybe starting to teach our kids at school about proper garbage disposal and respect of the natur would help?). We should open up our mind too to what's happening outside our house and look over the neighbour's fence, not everything is perfect but there's always something which can be done better in future. 🙏
Firechef
Friday 28th of June 2024
Still don't know how to spend those millions of dollars means they haven't figured out yet how to split it between themselves.
Hns
Friday 28th of June 2024
Obviously they don’t yet know how to spend the money from this tax. But don’t be surprised if the money disappears in certain pockets