Hotel tax to reach $23m

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)