Kuala Lumpur City Hall confirmed it has not held any discussions with the Communications and Multimedia Ministry regarding the reduction or removal of the entertainment tax.
This, despite Deputy Communications and Multimedia Minister, Datuk Zahidi Zainul Abidin, saying in July, that his ministry would meet stakeholders, including state governments, to discuss the proposal for entertainment tax to be cut, or reduced.
In a statement to Twentytwo13, City Hall said, it has instead organised several meetings with live events promoters to explain the matter.
“Any action to reduce or remove the entertainment tax comes under the Finance Ministry’s jurisdiction,” the statement read.
“City Hall, as the local council, will only implement or enforce the Entertainment Duty Act, 1953.
“To obtain a tax exemption, the organiser will have to put in an application to the Finance Ministry.”
City Hall was responding to Twentytwo13’s Aug 9 report, in which live events promoters in Malaysia were wondering what had happened to plans to reduce or remove the entertainment tax.
Arts, Live Festival and Events Association (ALIFE) chairman Paramanathan Rajagopal had told Twentytwo13 on Aug 9 that there had been no formal engagement with the live events industry players.
He was quoted as saying: “ALIFE, in the course of our discussions with the Selangor government, was shocked to find out that Kuala Lumpur had gone back to demand the full 25 per cent entertainment tax. Some promoters have already received their notices to pay this amount.”
Twentytwo13 reached out to the Communications and Multimedia Ministry last week, and is still waiting for a reply.
Many industry players were crippled following the various lockdowns imposed due to the Covid-19 pandemic. There are also fears that the gloomy economic outlook and weak ringgit will hurt consumers’ spending power in 2023.
Kuala Lumpur is set to host some of the biggest names in the entertainment world. They include Billie Eilish (Aug 18), Justin Bieber (Oct 22), Jay Chou (Jan 15, 2023), and Blackpink (March 4, 2023).
