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Dream - Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, admitted to being surprised when he found out about the increase in entertainment tax rates to around 40 percent to 75 percent. He believes that this tax increase will disrupt the business climate in Indonesia. "Entertainment tax, I was also surprised," said Bahlil at the Ministry of Investment Office, quoted from Merdeka.com, Thursday, January 25, 2024.
Discussion with Luhut
Bahlil claimed to have communicated with Coordinating Minister for Maritime Affairs and Investment, Luhut Pandjaitan. Luhut himself hopes that the tax increase can be postponed in its implementation.
"Indeed, this is disturbing, but Minister Luhut has conveyed to hold on, not to be done yet because it still requires further study," he said."
Seen from the user's side, Bahlil assessed that the tax amount will burden entrepreneurs in the entertainment industry. Furthermore, this policy can also have an impact on the reduction of the number of consumers in the entertainment industry.
"According to me, as someone who has experienced expensive entertainment taxes before, no one will come in if it's this expensive. So it's dangerous, there are only a few consumers. If the additional production costs are high, the selling price will be high, not competitive in the future. That's the impact there,"
Kepala BKPM Bahlil Lahadalia
From these experiences and considerations, Bahlil is worried that the increase in entertainment tax rates could have a broader impact on business development in Indonesia.
"Rasa-rasanya begitu, tapi buktinya kan baru diterapkan, belum saya lihat. Tapi feeling saya akan berdampak yang kurang pas," "It feels like that, but the evidence has just been implemented, I haven't seen it yet. But my feeling is that it will have an inappropriate impact."
quote Bahlil.
As information, in the latest Entertainment Tax Regulation, namely Law Number 1 of 2022 concerning Financial Relations between the Central Government and Local Government (HKPD), entertainment tax for categories such as discos, karaoke, nightclubs, bars, and steam baths/spas has been increased to 40 to 75 percent. In response to complaints from industry players, the government provides relaxation by giving corporate income tax incentives to companies operating in the entertainment sector.
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