KUALA LUMPUR – Selangor’s entertainment tax has been a recent talking point for performers, venue owners, and show organisers, with many of them urging the state to waive the requirement to pay upfront the 15% duty on tickets of live performances.
Menteri Besar Datuk Seri Amirudin Shari in a series of tweets said there seems to be a misunderstanding with the word “imposed”, as it implies the policy is new.
He said ticketed performances are subjected to a 25% entertainment tax in all states, but this year, Selangor has waived it for theme parks.
“Next year, Selangor will reduce the rate to 15% for ticketed/paid performances, while theme parks will be charged with a rate of 5%.
“The truth is, the Selangor government has reduced the tax rate from 25% to 15% for ticketed performances, and from 25% to 5% for theme parks.”
However, the performing arts community is calling for the state government to waive the tax completely to give performers and organisers a chance to recoup their losses, seeing that the industry was closed since the start of the pandemic last year.
Many have taken to social media to circulate and sign a memo aimed at Amirudin, saying the requirement for 15% to be paid upfront before performances begin has a big impact – as venues are only reopening now after being considered non-essential for nearly two years.
“Now that performing arts events can be staged after almost two years of lockdowns, many art practitioners and companies are struggling to not only finance their delayed projects, but to even stay afloat.
“Therefore, the current requirement to impose duty on a loss-making, struggling activity is mind-boggling. We are also saddened, but not surprised that this same issue has been going on for decades with a similar plea made by the arts community in 1984.
“DBKL (Kuala Lumpur City Hall) removed entertainment tax requirements following appeals, and this should apply nationwide. It makes no sense to provide tax incentives to sponsors of performing arts, if arts makers must still pay tax – and furthermore, pay upfront – even before selling tickets.
“In a sector that is already struggling and under-supported, the decision to impose a 15% duty on tickets is a severe impediment and must be immediately revoked,” it said.
Prominent performers such as comedians Jason Leong and Phoon Chi Ho have highlighted the issue on their social media channels, urging the state government to reconsider.
Dear @AmirudinShari and Selangor State Government, please waive the 15% entertainment tax.
— Dr Jason Leong ?? (@DrJasonLeong) December 11, 2021
We are barely clawing back after 2 years of not doing shows, and this will kill hopes of reviving the local arts scene.
Friends, please RT to support the Arts.
cc: @imokman @_jamaliah_ pic.twitter.com/83Fas1dMrb
“Dear @AmirudinShari and the Selangor government, please waive the 15% entertainment tax. We are barely clawing back after two years of not doing shows, and this will kill hopes of reviving the local arts scene. Friends, please retweet to support the arts,” Leong said.
He also tagged Bangi MP Ong Kian Ming and Bandar Utama representative Jamaliah Jamaluddin. Ong in a quote tweet replied: “Support!” and Jamaliah retweeted Leong’s post.
Meanwhile, Phoon shared his experience of being on the comedy show circuit, adding that most performers find it hard to make ends meet.
I've been organizing comedy nights, mostly open mics, since 2006. In these 15 years, I've helped put up shows in KL, Penang, Kuching, K. Kinabalu and Labuan. These rooms either make very little or nothing, unless one swindles the venue provider. These shows were done in the... https://t.co/huCu6ne6YV
— Phoon Chi Ho (@chihohoho) December 11, 2021
“I’ve been organising comedy nights, mostly open mics, since 2006. In these 15 years, I’ve helped put up shows in KL, Penang, Kuching, Kota Kinabalu, and Labuan. These rooms either make very little, or nothing.
“An estimated 300 aspiring comedians have come through these shows. Most fizzled out, a handful became world renowned like Ronny Chieng, Uncle Roger, Kavin Jay, Leong, etc. But they all started here.
“Now, this 15% tax is going to add more vows to an already vowful local comedy circuit and I’m not even talking about our new jokes (sorry!). Remember, these are playgrounds for comedians. It’s like taxing badminton players for owning badminton courts!
“In my last four shows, after all the calculations – takings-costs=profit/performers – it came up to just RM600. To tax a tiny circuit is a tragedy, and also, the real comedy.
“But I know my peers will be looking forward to it because they’re finally ‘making enough’ to get taxed. Sheesh.”
Five Arts Centre member Mark Teh questioned the need to tax ticketed performances, noting that the mechanism does not distinguish between shows – be they traditional, non-profit, or independent.
Isu pokoknya: kenapa perlu duti untuk semua persembahan yang mengenakan tiket / bayaran? Mekanisme tidak bezakan kepelbagaian & nuansa corak persembahan - tradisional, projek non-profit, indie, dll. Bukan semua persembahan profit-making & konsert skala besar / heboh / ganza.
— Mark Teh (@markteh_) December 10, 2021
“Not all performances are profit-making or large-scale concerts. It’s a catch all. (The tax system) can be improved upon. DBKL got rid of this tax a long time ago.”
His views were echoed by screenwriter June Tan, who said the tax is not the way to nurture the arts scene.
“Local shows and performances – contemporary theatre, dance, music – all suffer from a lack of audience development and find it difficult to break even. To assume cultural work requires an upfront duty is perhaps not the best way to encourage local arts.”
Local shows and performances - contemporary theatre, dance, music all suffer from lack of audience development and find it difficult to break even. To assume cultural work requires an upfront duty is perhaps not the best way to encourage local arts.
— June Tan (@cicak27) December 10, 2021
Earlier this month, Amirudin told the Selangor assembly that the state government lost more than RM50 million in revenue due to the recent entertainment tax exemption.
During the winding-up session on the state budget, he said the loss in revenue will impact Selangor’s development.
The exemption had been imposed on entrance tickets to theme parks in the state from March 18 last year, to December 31 this year. – The Vibes, December 12, 2021
