Selangor waives entertainment duty after industry outcry

 

The Selangor government is waiving the 15 percent entertainment duty from the year 2022 following an outcry from the performing artistes and venue owners.

However, the waiver does not apply to performances by international artists, the Selangor Menteri Besar's office said in a statement.

The waiver also applies to non-ticketed live band performances, while the duties do not apply to buskers, it said.

Earlier, entertainers condemned the duties as oppressive, particularly when the industry is just reopening after a long Covid-19 lockdown on entertainment activities.

Stand-up comedian Kavin Jay told Malaysiakini that with the duties, he would not be able to put on a show as tickets barely cover costs, even without the duties.

He also lamented how the duties have to be paid upfront, based on estimates of 100 percent of tickets sold.

This means show producers will have to have deep pockets to put on a show, as refunds from the state for any duties paid on unsold tickets can take time.

"The average profit margin for a single ticket is about 10 to 15 percent, so the earnings are in the negative once we take out the cost of production, promotion and duties," he said.

Last year, Selangor Menteri Besar Amiruddin Shaari clarified that the 15 percent entertainment duty is actually a reduction from the 25 percent original rate.

He added that the state had also reduced duties on theme parks from 25 to 5 percent of tickets sold.

He was responding to a memorandum by artistes protesting the entertainment tax. - Mkini