Hotel tax to reach $23m

JAKARTA (JP): The collection of the development tax from hotels and restaurants is expected to reach Rp 50 billion (US$23.18 million) this fiscal year, Minister of Tourism, Post and Telecommunications Joop Ave says.

He told reporters after opening a two-day workshop on tourism promotion here yesterday that out of these funds, 80 percent will go to local administrations and the remainder will be contributed to the Indonesian Tourism Promotion Board.

Under Presidential Decree No. 6/1993, the development tax on hotels and restaurants has been increased from six to 10 percent since Jan. 6.

Many hoteliers and restaurant owners, especially those operating in Bali, have objected to the regulation because the rate increase has affected their businesses.

An executive of the Indonesian Hotel and Restaurant Association told The Jakarta Post that the new rate is much higher than the four percent in Singapore, seven percent in Japan and eight percent in Thailand. (icn)