S’gor’s entertainment tax waiver only kicks can down the road: artistes

KUALA LUMPUR – Selangor’s decision to waive the entertainment tax for live performances in 2022 merely kicks the can down the road, said members of the local performing arts community.

While welcoming Menteri Besar Datuk Seri Amirudin Shari’s announcement, they claimed that the move fails to address the root cause of the issue.

“Sure, they waive the tax now, but what about the other things we asked for?” asked stand-up comedian Kavin Jay, referring to a proposal submitted to Shah Alam by arts coalition ReformARTsi which urges the state to create a performing arts venue registry.

According to a document sighted by The Vibes, the proposal calls for an entertainment tax exemption on any performing arts events held at these registered venues.

A coalition of 118 members representing 56 companies, ReformARTsi contends that the registry will simplify regulation and enforcement while demonstrating the state’s support of the performing arts – something that Kavin describes as a “win-win”.

Previously, Kavin had called the tax “absurd” as it charged a blanket rate of 15% on shows regardless of audience size and ticket price.

One size doesn’t fit all

One solution to this, put forth by rapper and producer Altimet, was to emulate the model used by music royalty collecting bodies such as Music Authors’ Copyright Protection (MACP) Berhad.

MACP licences are required whenever music is played in a commercial setting, such as a pub, supermarket, or restaurant, to name a few.

Altimet, whose real name is Syed Ahmad Syed Abdul Rahman Alhadad, proposes that the amount collected by the authorities should depend on the size of the audience or event space.

“So, the annual dinner with 1,000 attendees pays more than a concert with 500 people (in attendance),” he told The Vibes via WhatsApp.

He also welcomed the tax exemption, calling it a form of relief that allowed the industry to get back on its feet.

The artist behind hits such as Kotarayaku and Kita Jaga Kita also expressed hopes that the creative industry would one day contribute 6-8% of national GDP, as opposed to its current contribution of less than 2%.

‘Impractical’

A further point of contention against the Selangor government’s year-long tax waiver was that it would deter event organisers from holding their shows in the state.

Rizal Kamal, president of the Arts, Live Festival and Events Association, said the ongoing 25% tax for shows featuring international artists would force organisers to hold shows in neighbouring Kuala Lumpur.

This, he said, would harm supporting industries such as food and beverage, and it would also cost the state precious tourism dollars.

Meanwhile, some performers also aired their grievances over the waiver, calling it impractical as there are only eight months left in 2022.

Stand-up comedian Joanne Kam was one such voice, saying that it takes, on average, six months to organise a large-scale show.

“We can’t keep doing small shows all the time. People will get bored. So, we save money, write new material, and when we’re ready, we put on a show,” said the veteran comedienne.

Echoing this was theatre doyenne Jo Kukathas, who said the December 31 deadline made it very difficult to plan ahead.

“I think they (Selangor government) need to think of it more long-term,” she said, adding that it would be difficult to budget for higher costs in 2023 as the process of acquiring sponsors was a long and tedious one.

“It’s already April now, so in eight months, we’ll be back at square one,” she said.

Kukathas, the founder of local theatre outfit Instant Cafe Theatre, also questioned the state’s priorities in terms of creating happiness for its citizens.

“Is Selangor merely a place with massive highways? Are we just becoming automatons?” she asked.

The arts, Kukathas said, is “one of the pillars of civil society,” and should therefore be empowered, giving citizens an option for things to do on the weekend other than “just going to a shopping mall”.

At the time of writing, The Vibes had reached out to the Selangor menteri besar’s office for comment and have yet to receive a reply. – The Vibes, April 10, 2022