Hotman Paris And Inul Daratista Value Entertainment Tax Tariffs Considered Burdening Entrepreneurs

Financial analysis (Photo: Unsplash)

The entertainment tax rate is being protested by various parties because it has increased by 75 percent. Among them, Hotman Paris Hutapea and Inul Daratista, who assessed that the high tariff on entertainment taxes could kill the business world.

'Threatened by the layoff of thousands of employees. Tourism in the death bell? 40 to 75 percent tax? The highest tax in the world!' wrote Hotman Paris Hutapea via his personal Instagram, quoted Tuesday, January 16, 2024.

40 percent of music people. Bands / entertainment / karaoke etc, fasting for a mandatory 1 month holiday, which is involved by many common people who need food, owners are always complete with holidays but full salaries and compulsory THR for Eid, "wrote Inul in his personal Instagram account.

Meanwhile, the policy of increasing the entertainment tax of 40 percent to 75 percent is stated in Law Number 1 of 2022 concerning Financial Relations between the Central Government and the Regional Government (UU HKPD).

Meanwhile, the entertainment tax that is complained about is regulated in article 50. Where there are five Specific Goods and Services Tax Objects (PBJT) regulated in the article.

"The PBJT objects are sales, submissions, and/or consumption of certain goods and services which include food and/or drinks, electricity, hospitality services, parking services, and arts and entertainment services," wrote the regulation.

In this regulation, arts and entertainment services are categorized as objects of the Specific Goods and Services Tax (PBJT). In addition, entertainment taxes are explicitly regulated in Article 55 of the HKPD Law. There are several arts and entertainment services, including film shows or other forms of visual audio that are shown live at certain locations; performing arts, music, dance, and/or clothing; beauty pageants; bodybuilding contests, exhibitions.

Then circus performances, acrobatics, and magic; race of horses and motorized vehicle race; game of dexterity; sport of the game using place/space and/or equipment and sports equipment and fitness;

Furthermore, recreation of water rides, ecological rides, educational rides, cultural rides, snow rides, rides, fishing, agrotourism, and zoos; massage parlors and reflection massages; as well as discotheques, karaoke, nightclubs, bars, and steam/spa showers.

In the second paragraph, this article contains exceptions to the imposition of tariffs, especially for arts and entertainment services that contain aspects of traditional culture promotion, community service activities, and other forms of arts and entertainment which are regulated by regional regulations (perda). As for article 58, the tariff for PBJT objects is set at a maximum of 10 percent.

However, specifically for PBJT tariffs for entertainment services for discotheques, karaoke, nightclubs, bars, and steam/spa baths, which are set at least 40 percent and 75 percent at the highest. However, the determination of the PBJT tariff is re-determined with a regional regulation.

Belid also regulates the amount of the principal value of PBJT which is owed by multiplying the basis for the imposition of PBJT in Article 57 at PBJT rates according to the regional regulation.

"The basis for the imposition of PBJT is the amount paid by consumers of certain goods or services," reads Article 57.