Possible fines for non-payment of Bali tourism tax: policy review underway

Bali's Acting Governor Sang Made Mahendra Jaya has announced that he is considering imposing fines on tourists who fail to pay the Bali tourism tax levy.

This mandatory fee of IDR 150,000 per person applies to all international visitors coming to Bali. However, Governor Jaya and the Bali Tourism Office are facing difficulties in ensuring compliance, as data shows that more than 60% of eligible tourists are not paying the levy. Some tourists deliberately avoid the fee, while others are unaware of its existence.

This tax was implemented on February 14, 2024, but despite extensive marketing efforts and collaboration with travel agents and the hospitality sector, many tourists remain unaware of this requirement. The Bali Tourism Office conducts spot checks twice a month at popular cultural sites, and asks tourists without a QR-code voucher to pay the tax immediately.

Although there are currently no fines or legal consequences for non-payment, Governor Jaya believes there should be harsher penalties for tax evaders. He has mentioned the possibility of introducing minor criminal penalties for violators. Policy reviews are underway, with discussions being held on potentially raising the fee to US$50 per person.

Governor Jaya has not elaborated on what these criminal penalties would include. Currently, tourists must pay the fee before leaving the country, allowing them to claim they have not yet paid if they do not have a QR-code voucher. To introduce legal penalties, policy and supporting legislation would need to be updated.

Since the implementation of the tax, it has generated over US$7.1 million despite only 40% of tourists contributing to the tax. This revenue provides a significant income for the Bali provincial government.

 The annual budget, to be released at the end of the year, will allocate funds to projects aimed at nurturing nature, preserving culture, and improving tourism infrastructure.

Governor Jaya's proposal to introduce criminal penalties is supported by I Gusti Ngurah Rai Suryawijaya, vice president of PHRI Badung. He advocates for a better QR-code inspection system and easier payment methods for tourists before they arrive in Bali. Suryawijaya emphasizes the need for cooperation with the government and international representatives to facilitate these changes.