Rejecting The Increase In Entertainment Taxes, Entrepreneurs Will Submit Material Tests To The Constitutional Court Next Week

Chairman of GIPI, Hariyadi Sukamdani (Photo: Mery Handayani/VOI)

JAKARTA - The Association of Indonesian Tourism Industries (GIPI) will submit a judicial review (JR) of Law (UU) Number 1 of 2022 concerning Financial Relations of Central and Regional Governments (HKPD) to the Constitutional Court (MK) next week.

For your information, the HKPD Law has stipulated regulations on Certain Goods and Services Taxes (PBJT) collected by districts/cities, specifically for DKI Jakarta collected by the province. Where PBJT for entertainment services at discotheques, karaoke, nightclubs, bars and steam/spa baths is subject to a minimum of 40 percent and a maximum of 75 percent.

"I don't think this week will be overtaken, maybe early next week. If not Monday, Tuesday. We want to talk openly when we register with the Constitutional Court so that the public can see," said GIPI Chairman Hariyadi Sukamdani when met at The Langham Hotel, Jakarta, Wednesday, January 31.

Hariyadi revealed that his party is currently drafting or improving the demands file. He said he had received input from entrepreneurs and the community in the tourism sector in compiling the file.

Furthermore, Hariyadi emphasized that his party will focus on one lawsuit, namely the cancellation of Article 58 paragraph (2) in Law Number 1 of 2022. This article is related to the imposition of entertainment taxes which ranges from 40-75 percent.

"We just focus on that (the article), because the problem is there. Our goal is to cancel (the article)," he said.

Previously, the Minister of Home Affairs Tito Karnavian said he was ready to face a judicial review lawsuit from entrepreneurs related to the imposition of entertainment taxes.

Tito said that judicial review is a legal step that is the right of every citizen, including for entertainment entrepreneurs such as karkoe to spa. Therefore, he also respects the steps taken by tourism sector entrepreneurs.

"It's okay, it's right, we're welcome, it's good. It's good that some are not satisfied with being asked by JR to the Constitutional Court, later we will replace it. Because it is the government and the DPR that make the law, we encourage JR," said Tito.