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 per cent 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. A copy of the letter was made available to The Jakarta Post.
Mr. Clifford stated in the letter that Indonesia, as a signatory nation to the Convention on International Civil Aviation (Chicago Convention) and an ICAO contracting state, was obliged to adhere to Article 15 of the convention, which stipulates that “no fees, dues or other charges shall be imposed by any contracting state in respect solely of the right of transit over or entry into or exit from its territory”.
The Bali administration has drafted a by-law 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 per cent of which end up in landfills.
Bali set to impose US$10 levy on foreign tourists to help save the environment
According to Statistics Indonesia (BPS), more than 6 million tourists arrived in Bali in 2018, increasing from 5.7 million in the previous year. Around 22.43 per cent of foreign tourists last year came from China, while 19.26 per cent visited from Australia. Others came from India (5.8 per cent), the United Kingdom (4.7 per cent) and Japan (4.3 per cent).