ALIFE Malaysia Claims New 25% Entertainment Tax Is Impacting Local Events & Organisers
ALIFE Malaysia claimed that the 25% tax could lead to an increase in concert ticket prices, affecting its primary target audience of teenagers and young adults.
By Aqasha Nalani — 22 Aug 2023, 04:56 PM
The Arts, Live Festival, and Events Association (ALIFE Malaysia) recently issued a statement claiming that the recently imposed 25% entertainment tax is impacting the ongoing and upcoming events held within the city
While the organisation acknowledges the previous exemption of the entertainment tax by the Selangor state government, it remains concerned about a lack of clear communication regarding the details of the tax.
It went on to say that there has been no official communication or notification from the Kuala Lumpur City Hall (DBKL) and Selangor's local authorities that explains the exact percentage and terms of the entertainment tax.
"This ambiguity has placed event organisers in a position of uncertainty, bordering on being held hostage by the local council, forcing them to choose between compliance and the risk of event permit denial," it said in the statement.
According to the president of ALIFE Malaysia, Rizal Kamal, the lack of communication has impacted the growth of Malaysia's entertainment industry
Rizal added that a total of 78 events have been forced to comply with this new legislation and are currently facing the risk of having their shows cancelled, causing organisers to seek legal counsel for help.
"It is imperative to acknowledge that the proposed 25% entertainment tax ranks among the highest in the region.
"When combined with additional financial obligations such as a 15% withholding tax, a RM500 levy, and an additional bond mandated by the Immigration Department on artistes, crew members, and musicians, the cumulative fiscal burden on event organisers and the live performance industry becomes exceptionally demanding," he said.
ALIFE Malaysia also claimed that the 25% tax could lead to an increase in concert ticket prices, affecting its primary target audience of teenagers and young adults who may no longer be able to afford to attend live shows
The organisation added that the entertainment tax will have an impact on the livelihoods of many professionals and businesses, not just event organisers.
To better the implementation of the tax, ALIFE Malaysia suggested the establishment of a reasonable and well-defined transition period that will help event organisers adjust their financial strategies and seamlessly incorporate the tax into their ticket pricing structures.
"As a representative voice of the live events industry, ALIFE implores DBKL to consider implementing a grace period for the inclusion of the entertainment tax in concert ticket prices.
"This grace period should take into account the broader implications for organisers and audiences alike," it said.
Muar member of parliament (MP) Syed Saddiq Syed Abdul Rahman recently said that it is hard for organisers to make money due to the 25% entertainment tax:
