Hotman Paris: Tax Almost 100 Percent, Which Country is this?

Hotman Paris: Pajak Hampir 100 Persen, Negara Apa ini?

Hotman Paris: Tax Almost 100 Percent, What Country is This?

Dream - Famous lawyer and entrepreneur, Hotman Paris Hutapea, continues to voice his opinion on the increased entertainment tax of 40 to 75 percent. Recently, he visited the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan. Previously, Luhut has also stated that this increase in entertainment tax should be postponed.

The translation of the text "Pendapat Hotman Paris" from Bahasa to English while preserving any HTML tags is: "Opinion of Hotman Paris".

"We met Minister of Home Affairs yesterday, today we met Coordinating Minister Luhut, both of them agreed that the 40 percent figure is unreasonable," said Hotman at the Coordinating Ministry for Maritime Affairs and Investment office, Jakarta, quoted from Liputan6.com, Friday, January 26, 2024."

According to Hotman Paris, the imposition of a minimum 40 percent entertainment tax is not something normal.

Hotman Paris: Tax Almost 100 Percent, Which Country is this?

"Because if your brain is still normal, no company will pay 40 percent of the gross. If you make a profit of 10 percent but have to pay 40 percent, there is something strange."

"Hotman Paris said."

"Tax Can Reach 100 Percent"

"In its calculation with other taxes, the total can reach almost 100 percent. 'We alone pay up to 40 percent, and some even pay 75 percent of gross income. Then we pay a 20 percent income tax, pay employee taxes, pay a 11 percent value-added tax on beverages. This means taxes are almost 100 percent, what kind of country is this?' he emphasized."

He also compared it to the amount of tax collection in several other countries. For example, Thailand charges only 5 percent entertainment tax, while Malaysia charges 6 percent tax.

"Remember, Thailand is only 5 percent, Malaysia is 6 percent, Singapore is 9 percent," he said."

In the same occasion, Chairman of GIPI, Hariyadi Sukamdani, said that there are already regional governments (Pemda) that collect entertainment taxes with new rates. However, there is an ongoing legal process in the Constitutional Court (MK). "We conveyed to him (Menko Luhut) that we are still facing obstacles in the field because the regional government has started issuing bills with new rates. Meanwhile, we are in the process of going to MK which will certainly take a long time," he said.

"He also requested the regional government to implement the provisions of the HKPD Law regarding incentives for entertainment entrepreneurs. For example, it can be done through tariff reductions or the elimination of fines. 'We ask Mr. Luhut as the Coordinating Minister overseeing the tourism sector, to be able to help so that regional heads can use their authority as stated in Article 101 of Law No. 1 (year) 2022, where in that article, regions have the right to issue fiscal incentives. It can be in the form of tariff reductions, elimination of fines, and so on,' he explained."

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