JAKARTA — Indonesian businesses are complaining about a series of recent and potential tax hikes ranging from “leisure” to value-added levies, with some associations taking the government to court as the country gears up for a presidential election later this month.
Effective last month, the rate for the country’s so-called leisure tax for nightclubs, bars, spas and karaoke clubs has been increased to at least 40% from as little as zero, with the ceiling remaining at 75%. Local governments, including in popular tourist destinations such as Bali and Yogyakarta, can decide on any amount within the range, but can also apply for exceptions and set a lower rate.