Boffins say boozers not the only losers in Bali
DENPASAR – Jakarta Post reports that analysts have branded the current high import tax regime on alcoholic beverage as a policy failure that has “neither discouraged consumption nor maximized revenues” and, as many had predicted, has “fostered a thriving black market”.
Bali Update (www.balidisovery.com), quoting from the Post reported that two scholars from Jakarta’s prestigious Centre for Strategic and International Studies (CSIS), Dionisius A. Narjoko and Teguh Yudo are claiming that the current alcohol taxes of 500 percent, among the highest in the world, has “failed to bring about the optimal outcome of generating revenue and protecting public healthâ€.
The two researchers have recommended to the government that the alcohol tax be reduced and any new tariff be based on alcoholic content as opposed to value.
The current attempt by the government to tax the value of alcoholic beverages has fostered a system rife with misrepresentation and under-invoicing.
Not surprisingly, the total tax revenue of only US$5.8 million collected in 2008 by the sole government importer underlines, according to the researchers, that a large black market exists in smuggled alcohol.
Government estimates of the size of the black market is equivalent to 60 percent of all alcohol consumed and represents lost tax revenues of Rp.1.5 trillion (US$1.3 billion).
The report also suggests that high taxes do not curb alcohol consumption and, in fact, have been linked to increased usage of low-quality liquor that endangers human life.
The government estimates that more than 60 people died from homemade liquor consumption in 2008.
The CSIS report blamed a lack of government knowledge of the alcoholic beverage sector as being at the root of the failed importation policy that has made the Indonesian tourism sector non-competitive with other destinations in the region.
Ian Jarrett
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive