Jakarta - The government has decided a new policy to exempt hotel and restaurant taxes in 33 regencies/cities in Indonesia. Especially cities and districts which have become priority tourist destinations.

This policy is followed after the raging spread of the corona virus (Covid-19). The effective policy will be valid for the next six months. Starting from March 2020.

Minister of Finance, Sri Mulyani explained, the deletion of hotel and restaurant taxes was given to 33 districts/cities that supported 10 tourist destinations such as, Danau Toba (Silangit) in North Sumatra, DI Yogyakarta, Malang in East Java, Manado in North Sulawesi, Bali, Mandalika in NTB , Labuan Bajo in NTT, Bangka Belitung, and Batam and Bintan in The Riau Islands.

"We provide support for the 10 tourist destinations, which consist of 33 regencies/cities, for not collecting hotel and restaurant taxes for 6 months," stated Sri after attending a private meeting at the Presidential Office, Tuesday (25/2).

Even so, the government was aware that there was a potential decrease in regional revenue due to the deletion of this hotel and restaurant taxes. As compensation, the Minister added, the government will provide grants of Rp 3.3 trillion for 33 districts/cities that will be affected by this policy.

"So that the region does not collect 10% hotel and restaurant taxes, so hotels and restaurants have an incentive must not to pay taxes for the next 6 months for 10 tourist destinations, there are 33 regencies/cities from these destinations," added Sri.

Besides, the government has decided to impose a 30 percent discount on airplane tickets from March to May 2020. The discounts were also given to the 10 selected destinations. The ticket discounts will be given at 30 percent for 25 percent seats per flight. For instance, for Boeing 737 aircraft, there are about 45 seats that get a 30 percent discount. The government has prepared a budget of Rp 443.9 billion for the discounting of domestic aircraft.

(Gea Carnando)