Pause on entertainment tax a relief to Penang creatives

GEORGE TOWN – Penang’s theatre groups are heaving a sigh of relief following news there will be a waiver on the entertainment tax through December.

State tourism and creative economy exco Yeoh Soon Hin, in a statement today, said it applies to performing arts spaces, cinemas, theme parks and other tourist attractions in Penang.

“The state government understands the financial burden faced by these industries, particularly in this time of the pandemic when restrictions are in place, with limited tourism and creative economy activities.”

The waiver is primarily aimed at helping industry players’ cash flow and alleviating their financial woes. 

Yeoh expressed hope that the gesture will continue, so as to aid in business stability.

Performing artist and director Lawrence Chan, who has staged shows at the Performing Arts Centre of Penang (penangpac), told The Vibes that the waiver will help the industry tremendously.

“As an example, at penangpac, we could accommodate 120 seats in pre-Covid-19 days.

“After the first movement control order (MCO), 50 seats were allowed, and now, after the second MCO, it has been reduced to 28 seats.

“Can you imagine, even if we can sell the 28 seats for all shows, and on top of the reduced profit, we also have to pay the tax. It would be a burden for us.

“If we earned RM400 in pre-Covid-19 days, now, it’s reduced to RM100. 

“Without the waiver, we would still need to pay the tax despite our reduced income.”

Last week, the penangpac general manager said the new standard operating procedures require a distance of 1.5m between audience members at performing arts centres and other such venues.

With only 28 seats per show, those who stage performances are unable to cover venue costs. – The Vibes, April 9, 2021