Get Discounts, Entertainment Taxes From The Mandalika Circuit MotoGP Event Of 20 Percent

Central Lombok Regional Secretary Then Firman Wijaya/DOK ANTARA

CENTRAL LOMBOK - Central Lombok Regency Government and Mandalika Grand Prix Association (MGPA) agreed on an entertainment tax from the MotoGP event at the Mandalika Circuit in October 2023 which must be paid by the organizers by 20 percent of the total ticket sales revenue. "The results are taken by the middle road, the local government provides a 10 percent discount, so that the entertainment tax that must be paid by MGPA is only 20 percent," said Central Lombok Regional Secretary Lalu Firman Wijaya in Praya, Antara, Thursday, November 9. He said that in the regional regulation (perda) the entertainment tax reached 30 percent, due to a request from the MGPA to be able to pay the entertainment tax of 15 percent, so to coordinate. The coordination that has been carried out by the local government together with the MGPA has been agreed for this year's MotoGP event to receive payment relief from 30 percent of the regional regulation and now only 20 percent can be paid. "Indeed, MGPA submitted a request for tax payment of 15 percent, and after we coordinated so that it was agreed that the tax payment would be 20 percent and we have lowered this because in the regional regulation the amount of entertainment tax reached 30 percent," he said again. Based on local government calculations, if the entertainment tax is at 30 percent, the realization of paid ticket sales is only Rp. 39,640,756,077, the local government will get local revenue (PAD) of around Rp. 11,892,226,823. It's just that because they are given concessions to 20 percent, from the realization of paid ticket sales only Rp39,640,756,077 by the district government, they will get PAD up to Rp7,928,151,215. "What is clear is that the final result of the negotiations is that 20 percent has been agreed, then we will get a PAD range of more than Rp. 7 billion," he said. For the payment process, just waiting from MGPA, including the previous event, namely the RRC, was also given a discount and tax payment of only 20 percent and the Rp7 billion was only for the Mandalika MotoGP. Central Lombok Regent H Lalu Fathul Bahri emphasized that the MGPA application had already been explained that directly the implementation of the MotoGP event had provided great benefits and had an impact on regional economic growth, especially Central Lombok. But on the other hand, the success of organizing the event is not comparable to ticket sales where the realization of paid ticket sales is only IDR 39,640,756,077 or 48 percent of the initial target of IDR 81,615,113,969.

“So this has not been able to cover the operational costs of organizing and experiencing losses. On that basis, the MGPA submitted an application, in order to be given entertainment tax relief for the sale of tickets for the 2023 MotoGP event the same as in 2022, which was 15 percent and we survive at 20 percent,” he said again.