Badung authorities will impose local taxes on boarding houses, based on the law No 35 the Year 2019, Kumparan reports. Owners of boarding houses in Badung are obliged to pay ten percent taxes every month. This is to increase the region’s income from taxes on hotels and villas as well as to manage the boarding houses in the region.
Boarding houses or kost in Bali are houses with five to fifteen rooms— according to law No 24 the Year 2011. Each room is available for monthly rent with little to none home appliances given. But nowadays, some of the kost owners added more hotel-like facilities there and rent them to tourists and travellers for daily. This can affect the occupancy rate in Badung’s registered hotels and villas since many travellers now prefer to stay in boarding houses, and the region can eventually lose their income from those taxes. Many of those boarding houses are also reportedly operating without permits and unlicensed.
Efforts have been made to introduce the new regulation since first issued in June 2019. Authorities are now still in the midst of registering all boarding houses in Badung area with now 50 new additions to the list.
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