Entrepreneurs Express Reasons Why It's Just Crowded About The 75 Percent Increase In Entertainment Taxes

Chairman of the Association of Indonesian Tourism Industries (GIPI) Haryadi Sukamdani. (Photo: Aris Nurjani/VOI)

JAKARTA - Chairman of the Association of Indonesian Tourism Industries (GIPI) Haryadi Sukamdani revealed the reason why he is only now fussing over the current increase in entertainment taxes, although the Central and Regional Government Financial Relations Act (HKPD) has been passed since 2022.

Haryadi explained that new entrepreneurs learned of an increase in entertainment taxes after the regional regulation was issued plus employers were never invited or involved in the discussion of the HKPD Law.

"The most basic question is why it's only been fussed about now, so we've never been involved in public consultations, there's never been a meeting with the DPR, there's never been a conversation with the government," said Haryadi to the media crew, Friday, January 26.

After the law was passed, he said, entrepreneurs also did not get socialization from related officials and businessmen were surprised when local regulations emerged that imposed new tax rates based on the HKPD Law.

"Secondly, after being promulgated there is also no socialization, especially because this is a regional tax, the regions should have called business actors. Our members just made a fuss because the regional regulation came out, they were shocked, then there was a bill, it was said that it was too late to react, but we saw what the problem was late because," he explained.

In addition, according to Hariyadi, because this is the entry into the regions, the center views that socialization should be carried out by the regions.

"Everywhere the name concerns the tariff issue, there must be socialization, if the DGT is diligent if there are new provisions they carry out socialization. This is a region, maybe the Ministry of Finance sees it because this is an area that socializes it," he added.

Previously, entrepreneurs came to meet with the Coordinating Minister for Maritime Affairs of the Republic of Indonesia Luhut Binsar Pandjaitan regarding the increase in the tax on certain goods and services (PBJT) for entertainment services to 40 to 75 percent.

One of them is lawyer Hotman Paris and dangdut singer Inul Daratista into two entertainment entrepreneurs who also visited the office of the Coordinating Minister for Maritime Affairs and Fisheries on Friday, January 26, 2024, to complain that a number of local governments have started collecting entertainment taxes at new rates.

In fact, previously the entrepreneur assessed that the central government had decided that this rule would be postponed.

The postponement was carried out using the mechanism for providing tax incentives as regulated in Article 101 of the HKPD Law.

Hotman urged local government officials to re-set entertainment tax rates to the old rules or abolished.

He referred to Article 101 of the HKPD Law which emphasizes the provision of fiscal incentives.

In addition, Hotman also refers to the Circular Letter (SE) of the Minister of Home Affairs Number 900.1.13.1/403/SJ concerning Guidelines for the Implementation of Certain Goods and Services Taxes on Specific Arts and Entertainment Services Based on Law Number 1 of 2022 concerning HKPD.