If you haven’t heard of Padel, where have you been? Have you not heard of the fastest-growing sport in the world?!
Padel has taken the world and Bali by storm, and now leaders want to make sure that these new businesses on the block are making a fair contribution to the island.
The Head of the Regional Revenue Agency, IGN Eddy Mulya, has spoken to reporters about the order issued by the Bali Provincial Government to find new sources of tax revenue for the province.
He explained that in Law Number 1 of 2022 and Government Regulation Number 35 of 2023, the Regional Revenue Agency has been given orders to find new sources of tax income.
Mulya shared that he and his teams are looking into the ways in which sports and recreational facilities, such as Padel venues, are operating.
He and his teams want to ensure these kinds of businesses are operating within the correct tax brackets. He told reporters, “Actually, padel is not used as a new object; if you look for a definition according to the law and PP, it must be taxed.”
He noted that in general, every recreation and entertainment business is subject to its own tax category, and sports facilities fall within the same bracket as recreation and entertainment businesses. Mulya explained, “The tax from the management of a sports centre is equal to 10%.”
Mulya confirmed that he and his teams will be contacting padel businesses across Bali to ensure that they are fully up to speed with tax law and the expectations from the Regional Revenue Agency about their finances.
Mulya did not suggest that any padel businesses in Bali were operating outside of the law, but simply that his teams will be checking to ensure that these businesses, which often offer more than only padel facilities, are paying all the relevant taxes.
Hundreds of tourism businesses and businesses focused on international clientele in Bali are being audited over the next few months; those found not to be paying the right amount of tax, or not compliant with licences and permits, will either be issued sanctions or warnings and given time to get their businesses in order.
This may result in some businesses changing the way they operate, and this could be reflected in prices and rates changing across the board.
This island-wide audit comes as the Bali Provincial Government has just signed an agreement with six regency leaders to stop encouraging or granting permits for new hotels and restaurants on productive land starting in 2026.
Bali’s Governor Wayan Koster has garnered the support of Regency leaders from Tabanan, Jembrana, Buleleng, Bangli, Karangasem, and Klungkung to stop the development of new hotels, resorts, guesthouses, and villas in these areas.
The agreement does not come without a little give and take, however.
In return for supporting the government’s vision to continue concentrating tourism development in the central south of the island, leaders in Tabanan, Jembrana, Buleleng, Bangli, Karangasem, and Klungkung will receive a fairer share of provincial tax revenue.
Governor Koster told reporters on Monday, 28th July. “These six regencies have agreed to no longer encourage hotel and restaurant development, provided the PHR is distributed more proportionally.”
He added, “The six regencies will only be developed as tourist destinations, while Sarbagia will become a center for hotel and restaurant businesses.”For context, Sabargia is an acronym for Denpasar, Badung, Gianyar, and Tabanan, which are the most urban areas of Bali Province.
Governor Koster concluded, “For example, in Karangasem, even though they belong to different political parties, they will still receive a share. I told the Regent, Don’t worry, my job is to develop Bali equitably and fairly.’
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