Government Knocks On Entertainment Taxes 40-75 Percent, Acting Governor Asks Regions In West Java To Do Calculations

Traffic Park Ade Irma Suryani Nasution, Bandung, during the pandemic on Sunday 23 May 2021. (ANTARA PHOTO-Raisan Al F)

JABAR - Acting Governor of West Java (Jabar) Beyvi Machmudin asked districts and cities in West Java to prepare for the increase in entertainment taxes set for entertainment service providers by 40-75 percent.

According to Bey, the new tax stipulation for the entertainment sector is the authority of the central government and local governments to adjust to the policy taken.

"That's the central authority. For regions, cities/districts, just adjust it. Of course, we hope that cities/districts will have calculations regarding the policy," said Bey at Gedung Sate Bandung, West Java, Tuesday, January 16.

With the considerations and calculations taken by local governments, Bey continued, it will not have an effect of decreasing public interest in the tourism sector and this sector will continue to grow.

"Considerings must exist. We continue to strive so that tourism becomes a growing economy. So it is hoped that local governments will calculate so as not to reduce public interest," said Bey.

Based on the Antara report, the entertainment tax has been regulated in Law Number 1 of 2022 concerning Financial Relations between the Central Government and the Regional Government (HKPD).

In the regulation, it is stated that certain goods and services taxes (PBJT) for entertainment services at discotheques, karaoke, nightclubs, bars, and steam/spa baths are set at a minimum of 40 percent and a maximum of 75 percent.

Entertainment tax is a type of tax collected by district/city governments, whose taxes are paid by consumers so that business actors only collect taxes that have been set.

It is known that entertainment taxes are one of the pillars of tax revenue in the regions.

In a press conference on the KiTa State Budget in Jakarta, Friday, December 15, 2023, Minister of Finance (Menkeu) Sri Mulyani said that regional taxes grew, driven by an increase in tax realization from the consumptive economic sector, such as hotel taxes, entertainment, restaurants, and parking.

Meanwhile, regional tax revenues until November 2023 were recorded at IDR 212.26 trillion or grew 3.8 percent on an annual basis from the previous IDR 204.51 trillion.