Dream - The government has increased the entertainment tax from 25% to 40% up to 75%. This policy is stated in Law No. 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments. Referring to Article 58 paragraph 2, specifically the tariff of Specific Goods and Services Tax (PBJT) on entertainment services in discotheques, karaoke, nightclubs, bars, and steam baths or spas is set at a minimum of 40% and a maximum of 75%.
"Inul Daratista Protests"
This new regulation has been complained about by business actors who feel that it can have an impact on their business, including Inul Daratista, a singer as well as the owner of Inul Vizta karaoke house.
Inul admitted that she would fire 5,000 of her employees at Inul Vizta if the entertainment tax increase is implemented. "I want to show off my business that will have its tax raised from 25 percent to 40-75 percent. If it really happens, 5,000 of my employees will be terminated, along with other karaoke business owners who will experience mass layoffs," Inul wrote in her TikTok post @inul.daratista.
The singer of the song 'Masa Lalu' expresses his disappointment with the Government. In fact, Inul considers Minister of Tourism and Creative Economy Sandiaga Uno wants to kill the entertainment sector. "Intentionally, Minister Sandiaga wants to kill many people so they can't eat this!!! President Jokowi, please listen to my shout, I'm waiting for good news, if possible, reduce the taxes instead of increasing them," said Inul.
Inul then showed the current condition of one of the branches of Inul Vizta Karaoke at Poins Square, in the Lebak Bulus area, South Jakarta. The karaoke place looks empty, even though it's a Saturday, which is usually a weekend. "Can we see the current condition? It's empty, and there are not many guests either. The tax here alone is already 25 percent," said Inul.
Inul also invites her employees to express their opinions. The employees assess that with the current 25 percent entertainment tax applied, guests often complain. "Even with just 25 percent, many guests complain, how about when the tax increases, we will definitely receive more complaints," said one employee of Karaoke Inul Vizta Poins Square.
"Inul tells a story that in one Inul Vizta outlet, there used to be 50 employees. However, now it has been reduced to 40 employees per outlet. 'Now, the employees here (Inul Vizta Poins Square) have decreased to only 35 people,' added Inul. According to the singer from Pasuruan, East Java, if taxes are increased to 75 percent, some of her karaoke outlets will go out of business because they cannot afford to pay such high taxes."
"From many of my outlets, I have so many employees, but if I settle them all because the taxes are too high, I can't afford to pay. It's not just me, maybe other karaoke friends have the same fate as me," he said.
"Inul asks the Government to reconsider Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD). 'So, for Minister and Jokowi, please review this law again. Because when taxes are raised, many people cannot work anymore. Please, Mr. Sandiaga Uno, I am waiting for our discussion so that we don't worry,' said Inul."
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