Excise Imposition At Music Concerts Is Considered Beneficial To Local Artists

Concert illustration (Photo: Unsplash)

Tax Observer and Head of Research Center for Indonesia Taxation Analysis (CITA), Fajry Akbar assesses that the discourse on imposing excise on music concerts is commonplace abroad and if implemented it is better to impose excise on ticket prices above Rp. 500,000 so that the impact for limited artists.

"Regarding music concerts. Abroad, services are commonplace for excise duty. Of course there needs to be a threshold for ticket prices. For example, excise duty is only imposed for music concerts with ticket prices above Rp. 500 thousand. So that the impact for artists is also limited," he explained to VOI, Friday, July 26.

Furthermore, Fajry assessed that this excise revenue could be earmarked or implemented in the cultural sector which can be enjoyed by traditional domestic artists.

"So, excise rates are imposed on music concerts at a rate of Rp. 500 thousand, such as K-POP concerts and then the money is used for the cultural sector, such as assistance for traditional dance studios. So the benefits of K-POP artists are transferred to traditional artists. Win-win solution," he said.

Previously, the Directorate General of Customs and Excise (DJBC) of the Ministry of Finance was conducting a review of goods for the imposition of excise, namely on tickets to music concerts to detergents.

This was revealed by the Director of Technical and Excise Facilities Iyan Rubiyanto, saying that a few years ago his party almost imposed excise duty on compact discs (CDs) due to the large number of protests from artists about the rampant circulation of pirated CD sales.

"A few years ago we almost collected pirated CD excise. The intention was good, in the past the artist's information was only 10 percent official, 90 percent of it was in Glodok on the side of the road," Iyan said in a Public Lecture on Excise Potential at STAN, quoted online Wednesday, July 24.

In addition, Iyan conveyed that Customs and Excise also included excise for art entertainment and concert tickets in the practice of excisable goods due to the high public interest in art entertainment that has the potential to increase state revenue.

According to Iyan, many Indonesians are categorized as rich because some time ago they participated in watching and buying Coldplay concert tickets in Indonesia, Malaysia, Singapore, and other countries.

"This is an entertainment ticket, this is sometimes yesterday a soldout, until there is another concert in Singapore and, then another concert (in other countries). It was bought and I think the Indonesian people are rich," he said.