Ask Entrepreneurs To No Longer Question The 40 Percent Entertainment Tax, DKI DPRD: All Beginning Is Difficult

Illustration of nightclubs (ANTARA)

Deputy Chairman of Commission C of the DKI Jakarta DPRD Rasyidi asked entrepreneurs in Jakarta not to question the amount of the 40 percent entertainment tax set by the DKI Jakarta Provincial Government this year.

The increase in entertainment taxes, since its stipulation, has been complained of by many entrepreneurs. In fact, the regulation was sued by the Constitutional Court (MK) by businessmen.

"Over time, we hope that all parties can accept it. All starting is difficult. Everything new is difficult. If that's the case, the increase is easy," said Rasyidi in his statement, Friday, May 17.

Moreover, according to Rasyidi, the tax increase is actually borne by customers or visitors to the entertainment venue.

"Because those who come to entertainment venues are not just for fun, usually have a lot of money," said Rasyidi.

This member of the PDIP faction of the DKI Jakarta DPRD emphasized that the increase in the entertainment tax by 40 percent could be seen on the positive side. One of them can increase the original income (PAD).

The positive effect of the increase in the entertainment tax, said Rasyidi, is expected to make the development plan in DKI Jakarta run optimally. This is because it has an impact on increasing the DKI Jakarta APBD from the tax sector.

Kita ingin mendapatkan sebuah tambahan profit dalam APBD kita. Karena, Pemprov DKI Jakarta berkomitmen menjaga iklim perekonomian di wilayah Ibu Kota.

It is known, the increase in taxes for entertainment business activities is 40 percent contained in Regional Regulation (Perda) Number 1 of 2024 concerning Regional Taxes and Regional Revenue. Previously, the entertainment tax in Jakarta was set at 25 percent.

For information, the basic regulations regarding entertainment tax rates are contained in Law Number 1 of 2022 concerning Financial Relations between the Central Government and the Regional Government (HKPD).

The derivative rules of the Job Creation Law also regulate certain Goods and Services Tax rates (PBJT). PBJT 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.

In Article 58 Paragraph 2 of the HKPD Law, it is stated that the amount of PBJT for entertainment services is at least 40 percent and the highest is 75.

Then, in Jakarta, the DKI Provincial Government issued Regional Regulation Number 1 of 2024 as a derivative rule for central government regulations. Provisions regarding entertainment taxes are contained in Article 53 number (2).

"Especially for certain goods and services tax rates (PBJT) for entertainment services at discotheques, karaoke, nightclubs, bars, and steam/spa baths, it is set at 40 percent," the article reads.