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Plans to introduce a new entertainment tax in Bali have been met with a strong backlash from businesses.

The government wants the 40% tax to apply to certain bars, nightclubs, beach clubs, spas and other entertainment venues.

Furious entrepreneurs have criticised the plans, saying any increase will result in higher prices which could in turn drive away tourists.

Opponents say the tax would also discourage domestic tourists from exploring much of the country and see small and medium business owners in top destinations miss out on customers, affecting the livelihoods of millions of Indonesian people in the entertainment industry.

However, Sandiaga Uno, Indonesia’s Minister for Tourism and Creative Economies, has denied the new tax could destroy the entertainment and tourism industry.

According to a report in the Bali Sun, Minister Uno was bombarded with questions about the tax at his weekly briefing, during which he called for calm.

“I was given a brief from the legal team that since there is a judicial review process, let’s wait for the results of that process,” he told reporters.

“Let’s use this opportunity to discuss finding a solution that advances the creative and creative industry and can also help strengthen state finances.”

Minister Uno also revealed that Bali has set a target of 14-15 million tourists in 2024.