Group raps imposition of 25pct entertainment tax on KL live events

 

Industry group Arts, Live Events and Festivals Association (Alife) has voiced its objections to the recent imposition of a 25 percent entertainment tax by Kuala Lumpur City Hall (DBKL) on all live performance events held within the city centre.

In a statement, the group said the move was both unexpected and poorly communicated, and as such, is causing significant disruptions to both ongoing and forthcoming events throughout Malaysia.

"Event organisers have received no official communication or notification from either DBKL or the Selangor state local authority, detailing the exact percentage and terms of the entertainment tax.

"This ambiguity has placed event organisers in a position of uncertainty, bordering on being held hostage by the local council - forced to choose between compliance or risk being denied a permit," Alife said in the statement.

The group's president Rizal Kamal said that the absence of transparent communication has created a climate of uncertainty.

"We are witnessing event organisers grappling with complex decisions on compliance in the face of inadequate information. This stifles not only our industry's growth but also its contribution to the nation's economy," he said.

Alife claimed that an alarming number of events are facing cancellation of their shows, and that event organisers are having to turn to legal counsel to navigate the situation.

While Alife acknowledged the necessity of generating revenue for local authorities, it called for a well-defined transition period that would allow the organisers to adjust their financial strategies and incorporate the tax into their ticket pricing structures.

It said that the proposed entertainment tax ranks among the highest in the region.

"When combined with additional financial obligations such as a 15 percent withholding tax, a RM500 levy, and an additional bond mandated by the Immigration Department on artistes, crew members, and musicians, the cumulative fiscal burden on event organisers and the live performance industry becomes exceptionally demanding.

"This is further exacerbated by elevated rental expenses for prominent venues like the Bukit Jalil Stadium and Axiata Arena," said Alife.

Employment opportunities

Its chairperson, Para Rajagopal, said the authorities should consider that live events constitute a substantial part of the nation's cultural and economic fabric, and generate income through accommodations, food and beverage, and transport sector.

"They provide employment opportunities for countless young professionals within the gig economy and contribute to both domestic and international tourism.

"Considering a typical concert ticket price range of RM200 to RM600, the application of a 25 percent entertainment tax could substantially burden concertgoers, particularly the sizeable demographic of teenagers and young adults constituting a significant portion of the audience," he added. - Mkini