Dream - The Government of DKI Jakarta Province has set an entertainment tax of 40 percent. This tax is specifically for certain entertainment services.
The determination is stipulated in Regional Regulation of the Special Capital Region of Jakarta Number 1 of 2024 Concerning Local Taxes and Local Levies. Certain entertainment taxes subject to a 40 percent tax are regulated in Article 53 paragraph 2, which states, "Specific rates of Specific Goods and Services Tax for entertainment services at discos, karaoke, nightclubs, bars, and steam baths/spas are set at 40% (forty percent)."
Meanwhile, Article 53, paragraph 1 states, "The PBJT rate for food and/or beverages, hotel services, parking services, and arts and entertainment services, is set at 10% (ten percent)." This Regional Regulation shall be effective upon promulgation, which is on January 5, 2024.
"Previously, a number of entrepreneurs complained about the amount of entertainment tax. They considered the tax to be too high and threatening to their business sustainability. They felt that the 25 percent tax that has been applied so far is already significant."
Just call her Inul Daratista. The dangdut singer complained about the amount of entertainment tax because she felt it could threaten the survival of her karaoke business, Inul Vizta. The singer from Pasuruan, East Java, even admitted that she was threatened with the possibility of laying off 5,000 employees if the entertainment tax increased.
Through Instagram, Adam Suseno's wife showed the condition in one of his karaoke places. She explained that the karaoke visitors were sparse due to high taxes. Inul even invited the Minister of Tourism and Creative Economy, Sandiaga Uno, to meet and discuss the new tax amount that is felt to burden the entertainment business owners.
“"I want to show off my business that is going to have its taxes increased from 25 percent to 40-75 percent. If it really happens, 5,000 of my employees will be laid off + other karaoke business owners will also have massive layoffs," wrote Inul in her TikTok post @inul.daratista. Not only Inul, Hotman Paris also feels objected. The famous lawyer indeed owns a nightlife entertainment business. He feels that the amount of tax threatens his business."
Hotman even uploaded a video with other businessmen to protest the new entertainment tax. He even asked President Joko Widodo to make a Government Regulation in Lieu of Law to cancel the 40 percent entertainment tax.
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