Entertainment tax: Reduction from 25 to 15pct, Selangor govt clarifies

The Selangor state government today clarified that the imposition of a 15 percent tax on ticketed entertainment performances was actually a reduction from the original 25 percent.

State executive council member Borhan Aman Shah, who is in charge of rural and cultural development, said it had instead mistakenly been portrayed as a new tax being imposed in Selangor.

"The accurate explanation is that the state government is lowering the tax on paid performances, from 25 percent before to 15 percent, while for theme parks, the tax is reduced from 25 percent to five percent.

"What the state government did was in solidarity with the plight of artistes and performers," he told Malaysiakini yesterday.

Recently, certain quarters in the entertainment industry have expressed their dissatisfaction over the Selangor state government's announcement on the imposition of the 15 percent tax.

It then led to some artistes launching a memorandum to express their protest against the issue to Selangor Menteri Besar Amirudin Shari.

According to their memorandum, the group complained that the industry has been in bad shape after not being able to conduct their businesses as usual for almost two years due to the Covid-19 pandemic.

During a debate in the Selangor state assembly on Dec 8, Amirudin said the state government had lost over RM50 million due to the absence of entertainment tax collection.

He cited the ban on cinemas during movement control orders as part of the factors that had affected the state's revenues.

"The reduction (in collection) will have an impact on the state's development and revenue," he said, as quoted by Bernama.

Meanwhile, Borhan said that taxes on ticketed performances is practiced in every state.

"However, as we are concerned about the plight faced by artistes who have been impacted by Covid-19, especially those in the performing arts sector, the state government is waiving the 25 percent only for theme parks for 2021," he said. - Mkini