Minister Calms Concerns at Entertainment Tax Hike

Citing details published by Antara News, Jakarta Globe is reporting that Indonesia’s Tourism and Creative Economy Minister, Sandiaga Uno, has said the recent increase in entertainment tax rates for service providers will not adversely affect the tourism sector.

Sandiaga stressed that the government’s objective with this policy is to empower and boost prosperity rather than impede business development. “There’s no need to worry; we will continue to offer support,” he said, as reported by Antara News on Thursday (10/1/24.)

Jakarta Globe says that under the law governing Financial Relations between the Central Government and Regional Governments (HKPD), the goods and services tax for entertainment venues like nightclubs, karaoke lounges, bars, and spas is now set at a minimum rate of 40-percent, and a maximum rate of 75-percent.

Previously, the law had stipulated an entertainment tax ranging from a minimum of 10-percent to a maximum of 35-percent.

The adjustment in tax rates for entertainment services took effect on December 8, 2023, as the tourism sector is gradually recovering from the Covid-19 pandemic, report Jakarta Globe.

“It is crucial to communicate information about this entertainment tax policy but rest assured, it will not hinder business activities in the tourism sector,” said Sandiaga.

To bolster businesses in the tourism sector, the government is committed to maintaining a conducive industrial environment and providing incentives, recognizing the significant role the tourism sector plays in job creation, say Jakarta Globe.

 

Source: Jakarta Globe

Stock photo by Louis Hansel on Unsplash

 

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