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| A Taxation Lecturer, Agustin Dwi Haryanti, SE, MM, Ak, CA, CSRS, CSRA (Photo: Devi Humas) |
The entertainment tax rate, which is a special provision as an object of Certain Goods and Services (PBJT) in the Law on Financial Relations between the Central Government and Regional Governments (HKPD Law), has received protests. That is especially true for industry players and influencers on social media. The 40%–75% tax increase is considered burdensome and detrimental to business actors, especially the entertainment industry.
The attention of Agustin Dwi Haryanti, a Tax lecturer in the Accounting program at Muhammadiyah University Malang, SE., MM., Ak., CA., CSRS., CSRA was caught. She feels the new regulations are burdensome due to the minimum and maximum limits imposed. She explains that local governments levy entertainment taxes. Therefore, the tax collection in each region will differ as each region has different policies. Moreover, not all entertainment industries are subject to such high entertainment taxes.
"The minimum 40% and maximum 75% tax are only for specific entertainments such as discos, karaoke, spas, nightclubs, and bars. This considers the nature of these entertainments, which are only enjoyed by certain groups," said Agustin, as she is commonly called.
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On the other hand, art performances, film screenings, exhibitions, circus shows, horse racing, motor vehicle races, beauty contests, bodybuilding contests, skill games, sports, recreational rides, massage, and reflexology parlours are subject to the highest entertainment tax of 10%.
As we know, the entertainment tax with a minimum of 40% and a maximum of 75% tax has a negative perception in society. Therefore, apart from increasing regional revenue, one of the objectives of raising this entertainment tax is to reduce interest in becoming loyal consumers of such negatively connoted entertainment venues. With this regulation in place, some consumers may think twice before visiting such places and using their services.
"Let's take Thailand as an example, which has a 5% entertainment tax. Because the entertainment tax is low, many entertainment places like that exist. If Indonesia does the same, the same thing may happen as in Thailand," she explained.
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Regardless, Agustin believes that if the government, in this case, the Directorate General of Taxation (DJP), manages the tax properly, Indonesian citizens falling under the Taxable Persons (WP) category will be loyal and have no issue paying taxes. The current problem is the trust of taxpayers and all Indonesian citizens, who have the right to an equitable distribution of tax collections.
Agustin hopes the government can thoroughly review whether the people truly feel the tax collection results. Then, if there is a desire to increase the tax rate, there must be rewards received by the main taxpayers. After all, the purpose of taxes is to make all Indonesian citizens prosper. Agustin hopes this tax does not benefit specific parties or harm others. (*dev/wil/fajr)
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