Response to Protests Against Entertainment Tax Increase, Government 'Persuades' Using 10% Corporate Income Tax Incentives

Kenaikan Pajak Hiburan Diprotes Pengusaha, Pemerintah Rencanakan Beri Insentif PPh Badan 10%

Increase in Entertainment Tax Protested by Entrepreneurs, Government Plans to Provide 10% Corporate Income Tax Incentives.

Dream - Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that the government will issue a circular letter (SE) regarding the relaxation of entertainment tax adjustments for discos, karaoke, nightclubs, bars, and steam baths/spas. Airlangga stated that the issuance of the SE is an order from President Joko Widodo to his staff. This policy is also a response from the government to protests from karaoke and spa business actors regarding the imposition of a 40-75 percent tax which is considered detrimental to their businesses.

"The government will issue a circular regarding article 101, in the circular that will be prepared by the Minister of Finance together with the Minister of Finance and the Minister of Home Affairs."

The following 'Bahasa' text translated to 'English' while preserving any html tags: "Airlangga's words to the media at the State Palace, Jakarta, Friday, January 19, 2024 quoted from Liputan6.com."

Response to Protests Against Entertainment Tax Increase, Government 'Persuades' Using 10% Corporate Income Tax Incentives

Airlangga explained that the SE will regulate the provision of incentives in the form of corporate income tax (PPh Badan) at a rate of 10 percent. However, he has not yet detailed the mechanism of corporate income tax incentives for businesses in the tourism sector.

"What the president (Jokowi) considers more is requesting a review of the Corporate Income Tax (PPh Badan) by 10 percent, but we have not yet studied the technical aspects, so we are given time to formulate the proposed incentives.""
say it.

"Dream.co.id."

In addition, the SE will also provide space for regional governments to implement certain lower entertainment tax levies than those regulated in the HKPD Law.

"In the HKPD Law, the tax rate for discotheques, karaoke, nightclubs, bars, and steam/spa baths ranges from 40 percent to 75 percent. 'We would like to convey that regions can impose a lower tax rate, below 40 or 70 percent, according to their respective capabilities,' explained Airlangga."

"Airlangga said, the relaxation of certain entertainment taxes will be issued soon. After the policy is issued, the government will immediately intensify socialization related to the circular on the relaxation of certain entertainment taxes."

"Immediately (SE published). Also immediately socialize, thank you,"
end Airlangga.

"Dream.co.id."

"Previously, Lawyer Hotman Paris protested about the high Specific Goods and Services Tax (PBJT) for entertainment services in discotheques, karaoke bars, nightclubs, bars, and spas. According to Hotman, the high tax levies on the entertainment industry can threaten the sustainability of tourism in Indonesia. 'What? 40 to 75 percent tax? What? OMG (the sustainability of the tourism industry in Indonesia is threatened),' writes Hotman Paris through his personal Instagram account @hotmanparisofficial."

Hotman specifically emphasizes the tax rates for art and entertainment services. It is stated, "specifically for entertainment services in discotheques, karaoke, nightclubs, bars, and steam/spa baths, the rate is 40 percent." Not only that, singer and owner of InulVizta karaoke house, Inul Daratista, also protests against the imposition of a 40 percent tax on karaoke. Inul considers the increase in entertainment tax rates to be too high and can potentially kill the entertainment business.

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Increase in Entertainment Tax Protested by Entrepreneurs, Government Plans to Provide 10% Corporate Income Tax Incentives.

"The government will issue a circular regarding article 101, in the circular that will be prepared by the Minister of Finance together with the Minister of Finance and the Minister of Home Affairs."

"What the president (Jokowi) considers more is requesting a review of the Corporate Income Tax (PPh Badan) by 10 percent, but we have not yet studied the technical aspects, so we are given time to formulate the proposed incentives.""say it.

"Immediately (SE published). Also immediately socialize, thank you,"end Airlangga.

"What the president (Jokowi) considers more is requesting a review of the Corporate Income Tax (PPh Badan) by 10 percent, but we have not yet studied the technical aspects, so we are given time to formulate the proposed incentives.""
say it.

"Immediately (SE published). Also immediately socialize, thank you,"
end Airlangga.