PETALING JAYA: The entertainment industry in Selangor is hoping that the state government will look into waiving the entertainment tax to get them through tough times.
Stand-up comedian Abdul Raqib Karim, 37, said many performers did shows for the passion.
“These shows don’t make a lot of money and we are prepared to accept that. Why is the government taxing us? What has the government done for the arts at the grassroots level?” he said.
The entertainment tax was deeply frustrating, especially for stand-up comedians, said Abdul Raqib, because the sector was still new.
“The entertainment tax will definitely be a setback,” he said.
Abdul Raqib said while Selangor Mentri Besar Datuk Seri Amirudin Shari had clarified that the 15% tax on all ticketed performances was cut from 25%, this was on top of licences and standard operating procedure for live shows.
“This is not inclusive of the immense expense to license foreign entertainers, many of whom are friends of the comedy scene, to do shows at these venues,” he said, calling the tax “absurd and unfair”.
Karyawan president Datuk Freddie Fernandez urged the state government to waive the tax, saying: “Due to the pandemic, we did not have many events and performances for the past two years. The last thing we want is more taxes.”
Fernandez, who is also Music Malaysia chairman, said with physical distancing in place, only a maximum of 50% seating was allowed.
“This makes it even more difficult for shows to cover their total cost, not to mention adhering to the SOP and disinfecting the venue, the ongoing supply chain disruptions and increased productions costs.
“The tax must be paid upfront in full (based on 100% of seats sold) before ticket sales, as a condition for the performance permit.
“For many smaller productions, this is simply out of their financial reach.
“The imposition of the tax could very well be the final nail in the coffin for many struggling artistes and will set the development of the performing arts industry back many years,” he said.
Arts, Life Festival and Events Association president Rizal Kamal urged the Selangor government to support the creative industry by immediately giving a tax waiver.
“The pandemic left many performance venues, producers, artistes and crew without an income and livelihood for nearly two years.
“If it is passed onto the consumer, the increased ticket price will drive away potential audiences.
“Even before the pandemic, the industry was struggling to produce shows to cover its production costs, while many artistes persevered in their craft out of sheer passion and love for the arts.
“We hope that the Selangor government can waive the collection of entertainment tax on all arts and stage performances by local artistes, while at the same time reduce this to 5% for all arts and stage performances by international artistes until 2026 to allow the industry to recover,” he said.
Rizal said the tax for stage performances in Selangor had always been 5% or below as the state government understood the plight and workings of the industry, pointing out that under Budget 2022, this had even been reduced to zero.
“However, this only applies to the Federal Territories, with some other states following suit.
“Selangor will be at a severe disadvantage as performers or producers will choose venues outside the state,” he added.
Amirudin, however, said entertainment tax had always existed and that this was not a new policy.
“Paid performances are subject to the entertainment tax at a rate of 25% and this is implemented in all states. In 2021, the Selangor government waived the entertainment tax for theme parks.
“In 2022, we will impose an entertainment tax of 15% for ticketed or paid performances and 5% for theme parks.
“The truth is that the Selangor government has reduced it from 25% to 15% for paid performances, and 25% to 5% for theme parks,” he added.