Bali Mulls Jail Time for Tourists Who Evade Tourism Tax

Bali is considering stricter penalties, including jail time, for tourists who evade paying the mandatory tourism tax. The move comes as the island struggles with low compliance rates since the IDR 150,000 levy was introduced in February.

Introduced in February, the Bali Tourism Tax Levy requires all international visitors to pay a fee of IDR 150,000 before leaving the island. The revenue generated is intended to fund tourism infrastructure development and preserve Balinese culture and natural heritage.

Low Compliance Among Tourists

Since the Bali Tourism Tax Levy was introduced in February, only 40% of tourists have complied. The fee is payable before leaving the island. Tourists can pay online through the LoveBali website or app, at counters at I Gusti Ngurah Rai International Airport, or through certain hotels and travel agents. Payment is accepted via credit or debit card.

Tourists receive a QR-code voucher after payment, which they must show if Tourism Task Force officers stop them during spot checks.

Governor Addresses Non-Compliance Issues

Bali’s Acting Governor, Sang Made Mahendra Jaya, is concerned about tourists evading the tax. Currently, there are no significant penalties for those who do not pay.

As a result, 60% of eligible tourists are not paying the levy, leading to lower-than-expected revenues. This shortfall affects the province’s plans for tourism development and cultural preservation.

Proposed Sanctions to Boost Compliance

To address the issue, Governor Jaya is proposing sanctions for non-payment. After meeting with the Indonesian Young Entrepreneurs Association (HIPMI) on September 7th, he suggested penalties of up to ten times the tax amount or a week of imprisonment for those who evade payment.

“If there are no sanctions, we can’t do anything if they don’t pay,” Jaya emphasized. He urged for quicker revisions to the regulations to enforce the tax more effectively.

Also Read: Bali Tourists Must Present Tax Vouchers for Access to Top Attraction

Streamlining Payment for Tourists

There is a recognized need to simplify the payment process for tourists visiting Bali. Authorities suggest that tourists should have the option to pay the fee at their accommodations, such as hotels, hostels, or guesthouses. The current system, with payments made at the airport, adds to lengthy procedures and may discourage compliance.

Call for Regulatory Revisions

Stakeholders, including HIPMI, are being urged to accelerate revisions to the tax regulations. Offering incentives to accommodations to assist with tax collection could improve compliance rates.

Ensuring that tourists contribute fairly to Bali’s tourism sector is essential for supporting the island’s culture and community.

Looking Forward

Bali remains focused on balancing tourism growth with sustainability. Proposed sanctions and streamlined payment options aim to enhance compliance with the tourism tax.

By closing enforcement gaps and making payments easier, Bali hopes to foster a sustainable tourism environment that preserves its unique culture and heritage.