Indonesian entertainment industry hammered by new tax law
May 16th, 2006
The geniuses who make laws in Indonesia, have come up with another great one. As Bali Discovery reports, the maximum allowable tax on certain entertainment businesses has been raised from 35% to 75% !!!!
You’ve got to feel for any successful entertainment business. With the costs of start up, research and development, promotions, staffing, transportation, venue, equipment etc. etc. You manage to make a profit…and the government wants 75%. I come from the UK, a country run by morons who have never owned a business, and think market economics is for capitalists. Well market economics exist whether you like it or not. Take a look at Bali right now. Spaghetti Jazz in Seminyak just closed after a few years in operation. A business can take only so much beating, and isn’t just a cow to be milked.
If he Indonesian government is going to leave no stone unturned, in its efforts to promote Bali / Indonesia as a prime tourist location, and help to make the Kuta Karnival ‘THE EVENT’ in SE Asia, then maybe. But don’t hit people up in a down market. That just doesn’t make sense.
Entry Filed under: Bali Tourism News
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