Badung Bali Launches Tax Crackdown on Villas to Boost Revenue

New Initiative Targets Unregistered Accommodation Providers

The Badung Regency Government in Bali has initiated a focused effort to enhance tax revenues from the local tourism sector, specifically targeting the high number of villas that have not been paying taxes. This crackdown comes in response to complaints from the community regarding the lack of tax compliance among many accommodation providers, particularly villas and boarding houses within the regency.

Formation of Special Coordination Team

To tackle this issue, the Badung Regency has established a special coordination team tasked with streamlining tax collection and ensuring that all businesses are properly registered. Ni Putu Sukarini, the head of the Revenue Division for Badung Regency, highlighted that the rapid growth of new villas in areas like North Kuta, Mengwi, and South Kuta has contributed to the challenge of getting many of these establishments onto tax rolls.

Community Involvement Essential

As part of the strategy, local communities are being encouraged to report any commercial villas they suspect of operating without proper registration. In cases where businesses are found to be non-compliant, they will be reported to the Regional Tax Authorities, known as Bapenda.

Sukarini explained that this community-driven approach will assist in identifying villas that evade tax regulations, thus ensuring a more comprehensive and fair tax collection system throughout the region.

Field Officers Deployed for Data Collection

To support these efforts, Bapenda has mobilized a team of 31 field officers, organized into eight groups. Their primary responsibility is to collect data on new businesses lacking a Regional Taxpayer Identification Number (NPWPD), which is essential for tax registration.

Sukarini emphasized that the registration process for obtaining an NPWPD can now be completed online, stating, "There is no reason not to register. Even if a business is not licensed, if it meets the criteria for tax obligations, we can still collect taxes."

Comprehensive Database on Accommodation Providers

To efficiently identify unregistered businesses, Bapenda has created a detailed database incorporating data from various online sales platforms. The authorities will employ law enforcement measures, including potential sanctions, against business owners who are found to violate regional tax regulations.

Current State of Accommodation Tax Compliance

According to the latest figures, Badung Regency currently has 5,710 registered accommodation-based taxpayers. This includes 4,218 villas, 1,100 hotels, and 310 other types of accommodations such as hostels, tourist lodges, inns, and motels. The need for improved compliance from villa owners is particularly critical to ensure the proper functioning of the tourism economy which significantly contributes to the region’s economic stability.

Conclusion

This tax crackdown by the Badung Regency Government signifies a strong commitment to enhancing the integrity of the local tourism sector and ensuring all accommodation providers contribute their fair share to the economy. As the initiative progresses, the government hopes to secure broader community support and foster compliance among local businesses, benefitting both residents and visitors alike in the tourist hotspot of Bali.