A number of organizations under the umbrella of Industries Unite in Malaysia have officially submitted a request to the government to formulate a roadmap for the phased abolition of the entertainment tax. This step is taken as a strategic effort to strengthen the country's tourism, cultural, and creative economy sectors.
Industries Unite Spokesperson, Datuk David Gurupatham, stated that the current tax burden of 25% is no longer felt to be relevant, considering that the entertainment sector is not a luxury commodity. According to him, the high tax rate directly impacts ticket price increases, which ultimately burdens the purchasing power of the general public.
David explained that by lowering or eliminating the entertainment tax, more affordable ticket prices are expected to trigger a surge in visitor numbers. The domino effect of increased visits is predicted to stimulate other supporting sectors, such as hospitality, culinary services, transportation, and retail businesses, ultimately making a greater contribution to state revenue through more massive economic activity.
Furthermore, David highlighted Malaysia's lag behind neighboring countries such as Singapore, Hong Kong, and Australia, which have adopted similar policies to attract international productions, global events, and private investment. He emphasized that a competitive tax framework is crucial for Malaysia to compete on the international stage as a world-class tourist destination.
While acknowledging that the entertainment tax has been a source of state revenue, Industries Unite emphasized the importance of synergy between the federal and state governments to carry out policy reforms. This change is seen as a crucial step in creating a more dynamic industry ecosystem, while providing more affordable family recreation for the Malaysian public.
