What is the "Tax and Service Charge" in Indonesia?
By
Tibs
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You have probably noticed that the prices in Indonesia in restaurant and bars are often accompanied of a "++" sign. For instance: "Sunday Brunch Rp350,000++" . The plus plus sign means that you will have to pay an additional charge for tax and service . The tax is a regional tax called PB1 or PHR (Hotel and Restaurant Tax) of 10%. It is collected by a Kabupaten (Regency) or a City, like Jakarta DKI. Technically, it is not a Value Added Tax (VAT) but it looks like it from a client's perspective. A regency like Badung in Bali, where Nusa Dua, Jimbaran, Kuta, Legian, Seminyak, Canggu and Uluwatu are located is extremely wealthy. In this area, they have 2000 hotels currently listed on Agoda and even more restaurants. Each of them give 10% of their revenue to the regency. A quick calculation: 30,000 room nights at 70$ on average X 70% occupancy X 365 days X 10% = 53,655,000 USD per year for the hotel tax only for this small regency. It makes me