A number of entertainment business operators in Semarang City, such as managers of discotheques, karaoke venues, nightclubs, and spas, have not yet applied the 40% Goods and Services Tax on Specific Goods and Services (PBJT). Business owners choose to stick with the old tax rate of 10% to maintain stable customer visits.
Chairman of the Semarang Entertainment Association (Pager Semar), Fic Indarto, revealed that the main concern of business operators is the policy's impact on public purchasing power. The application of a tax deemed excessively high is considered likely to make the entertainment industry quiet, ultimately threatening business sustainability and job absorption in the sector.
Fic emphasized that entertainment business owners in Semarang actually have no intention of evading tax obligations. He stated that they continue to fulfill tax obligations through turnover-based calculation mechanisms, despite not explicitly listing the 40% rate on customer bills. He also highlighted the need for uniform implementation of this policy across regions to create a fair and non-discriminatory competitive climate.
This PBJT rate policy refers to Law Number 1 of 2022 on Financial Relations between the Central Government and Regional Governments (UU HKPD). Under these regulations, the government sets the tax rate for certain entertainment services between 40% and 75%. The Semarang City Government adopted this provision through Semarang City Regional Regulation (Perda) Number 10 of 2023, effective since early 2024.
Although the regulation has been passed, business operators hope the regional government will review the economic impact of this policy. They desire further dialogue so that the applied tax policy does not prove counterproductive to local tourism and entertainment business dynamics.
