KUALA LUMPUR: Creative industry players, cinema operators and restaurant owners want the Selangor government to waive entertainment duties levied on the sectors for 2022.
Since January 2021, the Selangor government has imposed 15 per cent entertainment duty on all arts and stage performances by local artists and 25 per cent entertainment duty for performances by international artists.
However, Arts, Live Festival and Events Association (ALIFE) president Rizal Kamal urged the state to fully waive the entertainment duty for performances by local artists and reduce it to five per cent for events featuring international artists until 2026.
"Previously, the industry was either given duty exemptions or the duty was set at five per cent. The current 15 per cent duty is, therefore, an increase.
"The duty is required to be paid upfront in full before ticket sales as a condition for performance permits to be issued. For many smaller productions, this is simply out of their financial reach.
"Production costs have also increased due to Covid-19. Organisers must carry out disinfections at the venue and reduce the seating capacity to 50 per cent to comply with physical distancing. This makes it harder for shows to cover its total costs.
"People also have lesser disposable income now. If the duty is passed onto the consumer, the increased ticket price will drive away potential audiences.
"This could very well be the final nail in the coffin for many struggling artists," he said, during a virtual press conference organised by Industries Unite on Saturday.
Rizal said, the federal government has fully waived entertainment duty for the creative industry under the 2022 Budget and several states have followed suit.
He said, the association submitted a memorandum to the Selangor government last month but has not received a response yet.
"With the current entertainment duty, stage performances in Selangor could drop by 80 per cent from pre-pandemic levels," he said.
Likewise, Malaysian Association of Film Exhibitors representative, Koh Mei Lee, appealed for the Selangor government to grant tax exemptions for cinema operators throughout 2022 and subsequently reduce it to five per cent from 2023 until 2025.
"The cinema industry might take between 2022 and 2025 to recover. So, we hope the Selangor government can grant us tax exemptions, just like they have done for theme parks in the state, starting 2022 until 2026.
"Cinemas provide wholesome entertainment and offers a chance for family and friends to bond. So, why are we subjected to a 25 per cent entertainment tax that is far higher than sin taxes?" she said.
Restaurant and Bistro Owners Association vice-president Jeremy Lim urged for the state government to waive the RM20 per day busking license fee for 2022.
"The busking license fee really bites into the income of many musicians who struggle to make ends meet.
"The state government should also expedite the process to renew alcohol licenses. Currently, it can take up to three months from the date of approval for owners to get the printed copy of their renewed license," he said.
Lim also asked the state government to abolish the charges imposed on businesses for playing piped music in their premises.
Meanwhile, Malaysia Shopping Malls Association president, Tan Sri Teo Chiang Kok, suggested for the National Security Council to end the physical distancing requirement for premises with patrons that wear face masks.