Hotman Paris Ngadu To Luhut Pandjaitan Asks For Entertainment Tax Back To Old Tariffs

Hotman Paris (Photo: Aris Nurjani/VOI)

JAKARTA - The famous lawyer and owner of night entertainment, Hotman Paris Hutapea, held an audience with the Coordinating Minister for Maritime Affairs of the Republic of Indonesia Luhut Binsar Pandjaitan regarding the increase in entertainment tax rates as stated in Law (UU) Number 1 of 2022.

Hotman said that during the meeting, Luhut did not agree with the application of a 40 percent lower rate increase.

"Yesterday we met the Minister of Home Affairs. Today we met the Coordinating Minister Luhut. Both agree that the 40 percent figure doesn't make sense," he explained to the media crew Friday, January 26, 2024.

Hotman suspects that the discussion of the Financial Relations Law between the Central and Regional Governments (HKPD) has not reached the top level. In addition, according to him, the HKPD Law did not reach the discussion with the President.

"It seems that at that time the discussion did not reach the top level. Even the source I got officially from the palace, the President did not know about it. It means that there are unscrupulous subordinate officials who do not report in detail," he explained.

According to Hotman, setting a lower limit of 40 percent is an abnormal decision plus an area that sets a tariff of 75 percent as a decision is very unreasonable.

"If your brain is still normal, no company will pay 40 percent of gross. If you are lucky, 10 percent has to pay 40 percent, that's strange. Even in the regions, some already use 75 percent of gross income. Does that make sense?", he said.

Hotman suspects that there are other people who want entertainment businesses such as discotheques, nightclubs, karaoke, and spas to be closed. In fact, the entertainment industry is an important part for the community to get income, especially from tourist arrivals.

"Even though this is very vital, tourists come and get to the plane, get money. Get down to the airport and get a taxi, get money. He goes to the restaurant, all Umkm supply chilies do everyone get money. For tourists, that's if it's night, is it true that he sleeps? Right? He went to the club. Just say it at the same time the tourism business is closed in Indonesia." he said.

Therefore, Hotman complained to Luhut to urge regional heads to apply Article 101 paragraph 3 of Law Number 1 of 2022 concerning fiscal incentives to be implemented immediately.

"The governor, mayor, regent in office without us asking, if there is awareness, yes, 40 percent (determination of tariffs) will not be followed but will return to the old tariff or even delete it," he said.

In addition, Hotman compared entertainment taxes in the country with other countries such as Thailand 5 percent, Malaysia 6 percent and Singapore 9 percent while Indonesia up to 75 percent.

"Thailand alone is 5 percent, Malaysia is 6 percent, Singapore is 9 percent. Up to 40 percent we even have 75 percent of gross income. Then pay a pph tax of 20 percent, pay employee taxes, pay a drink tax of 11 percent. That means the tax is almost 100 percent of what country is this?," he concluded.