Hotman Paris Alludes To The Amount Of The Entertainment Tax, DGT Says It's The Authority Of The Regional Government

The Directorate General of Taxes (DJP) of the Ministry of Finance has opened its voice regarding the protests by the famous lawyer Hotman Paris Hutapea regarding the amount of certain goods and services taxes (PBJT) for entertainment services at discotheques, karaoke, nightclubs, and steam or spa showers of 40 percent to 75 percent.

For information, through his official Instagram account @hotmanparisofficial last weekend, he considered the amount of tax rates to threaten the continuity of the tourism industry in Indonesia.

"What? 40 to 75 percent tax?? What?? OMG (Tourism industry continuity in Indonesia is threatened)," he wrote on Saturday, January 6, 2024

In addition, Hotman uploaded screenshots of Articles 57 to 59 in Law Number 1 of 2022 concerning HKPD.

"Especially for PBJT tariffs for entertainment services at discotheques, karaoke, nightclubs, bars, and steam or spa showers, it is set at a minimum of 40 percent and a maximum of 75 percent," reads Article 58 paragraph 2 in Hotman's upload.

Director of Counseling, Counseling, Services, and Public Relations of the Directorate General of Taxes (DJP) Dwi Astuti said that the implementation of tax rates for entertainment services is fully under the authority of the regional government (Pemda).

"The local government entertainment tax," he said, Monday, January 8.

Dwi emphasized that this authority was handed over to the regional government in accordance with the mandate in Law Number 1 of 2022 concerning Financial Relations between the Central Government and the Regional Government (HKPD).

So that the DGT does not have a role to evaluate its size.

"It is absolute that in accordance with the HKPD Law, what is not regulated by the central government is the full authority of the regional government," he explained.

For information, Article 4 Paragraph 2 of the HKPD Law explains that one of the taxes collected by district or city governments is the tax on certain goods and services, aka PBJT.

In addition, Article 58 paragraph 2 of the HKPD Law states that the amount of PBJT for entertainment services including entertainment services at discotheques, karaoke, nightclubs, bars, and steam/spa baths is set at a minimum of 40 percent and a maximum of 75 percent.