Dream - The Ministry of Finance (Kemenkeu) affirms that not all entertainment business sectors experience tax increases as protested by entrepreneurs. Entertainment tax has been categorized as a specific goods and services tax (PBJT). Lydia Kurniawati Christyana, Director of Regional Taxes and Regional Levies at the Ministry of Finance, explained that specific goods and services tax (PBJT) is regulated in Law Number 1 of 2022 concerning the Financial Relations between the Central Government and Local Governments (UU HKPD).

Lydia said, with the regulation, cinemas, fashion shows, beauty contests, and music concerts actually experience a decrease in rates. In the previous regulation stipulated in Law Number 28 of 2009, the highest tax rate was 35 percent.

"Meanwhile, the increase in entertainment tax is only allocated for bars, nightclubs, discos, steam baths, and karaoke, which have been raised to 40 to 75 percent. 'The increase is only for certain entertainment services, namely bars, nightclubs, discos, steam baths, and karaoke, because they are consumed by a certain segment of the population,' added Lydia."

The government is currently preparing fiscal incentives for corporate income tax (CIT) for entertainment service providers. The tourism sector will be given a tax reduction in the form of Government-Borne Facilities (GBF) amounting to 10 percent of the corporate income tax, so that the corporate income tax rate, which is currently 22 percent, will become 12 percent.