IATA objects to Bali’s tourist tax proposal

Popular spot: Tourists posing for photographs on Kuta beach. IATA has expressed its objection to Bali’s plan to tax foreign tourists. — AFP

DENPASAR: The International Air Transport Association (IATA) has expressed its objection to a plan of the Bali administration to impose a levy on foreign tourists that may be included in airline tickets.

The group, which represents more than 290 airlines accounting for 82% of total global air traffic, has sent a three-page letter to Bali Governor I Wayan Koster regarding the plan.

“The imposition of a foreign tourist levy (or similar tax) would directly contradict accepted policies on taxation published by the International Civil Aviation Orga­nisation (ICAO), a specialised agency of the United Nations,” IATA regional vice-president for Asia Pacific Conrad Clifford wrote on Jan 24.

A copy of the letter was made available to The Jakarta Post.

The Bali administration has drafted a bylaw on tourist contributions for the environment and cultural preservation, which has been discussed with the Bali Legislative Council since December.

The island province, which is struggling to reduce plastic waste on and off its shores, produces some 3,800 tonnes of waste every day, only 60% of which end up in landfills.

The council and the administration are considering whether the levy should be included in airfares or collected at special counters at the airport. The first option is seen as more feasible with the help of airlines. — The Jakarta Post / Asia News Network