Dream - The Ministry of Finance (MoF) responds to protests from a number of entertainment entrepreneurs, including celebrities, regarding the adjustment of entertainment taxes ranging from 40 percent to 75 percent. Prominent figures such as Inul Daratista and Hotman Paris have also expressed their disagreement. The amount of tax levies is regulated in Law Number 1 of 2022 concerning the Central and Regional Financial Relations or the HKPD Law for discotheques, karaoke, nightclubs, bars, and spas.

In addition to being enjoyed by certain communities, the financial performance of karaoke, discotheques, and spas businesses is also considered to have returned to pre-pandemic levels. Lydia recorded that local tax revenue from these special entertainment reached Rp2.4 trillion in 2019. Meanwhile, internal data for the current year 2023 has already accumulated Rp2.2 trillion.

"So, in 2019 the total revenue from entertainment taxes was Rp2.4 trillion. Due to Covid, it dropped significantly in 2020 to Rp787 billion. In 2021, it further decreased by Rp477 billion. However, in 2022, due to Covid, it increased from Rp477 billion to Rp1.5 trillion. And now, it is almost nearing pre-Covid levels, our data in 2023 is around Rp2.2 trillion," confirmed Lydia.

Lydia mentioned that the HKPD Law also provides opportunities for nightclub, karaoke, and spa operators to apply for incentives if they are having difficulties in paying their taxes. This relief provision is regulated in Article 101 of the HKPD Law. "However, in the future, the respective local governments will require the relevant business operators to submit financial reports," concluded Lydia.