On 22 January 2022, Industries Unite had proposed two appeals to the Selangor government that will tremendously help the creative industry like cinemas and restaurants to gain a waive from 2022 entertainment duties.
Dated back on 17 February 2021, Selangor State Treasury had issued “Pemakluman Kadar Baharu Duti Hiburan Bagi Aktiviti Kesenian Atau Pementasan Artis Tempatan Dan Artis Luar Negara Di Negeri Selangor“. The newly implied law will collect 15% entertainment duty to all arts and stage performances by local artists and 25% entertainment duty on all art and stage performances by international artists starting 1 January 2021 till 31 December 2026.
During the discussion, Rizal Kamal, president of Arts, Live Festival and Events Association (ALIFE), believes that the Selangor State should abolish the entertainment duty currently imposed on the creative industry players. He stated, “The duty is required to be paid upfront in full before ticket sales as a condition for performance permits to be issued. For many smaller productions, this is simply out of their financial reach.”
With the ongoing pandemic, it’s required for all cinemas to limit their maximum capacity to 50% seating capacity due to social distancing requirements. This limitation would cost cinema operators a higher total cost to sustain their business. Not to mention that all duties must be paid upfront, based on the maximum seats sold before the tickets are sold.
As for the second appeal, Industries Unite proposed to the Selangor State Government to iron out the state policies and regulations which affect business owners in Selangor. Industries Unite brought up four main issues that affect the Food and Beverages Industry.
- Communication and Clarification on SOP.
- Due to misunderstandings and unfavourable enforcement actions, many F&B businesses were heavily affected by the law imposed by Federal and State bodies.
- Pre-Requisites for Entertainment License.
- The state law should clarify the requirements to apply for an entertainment licence.
- Alcohol Renewal Licenses Applications.
- With the delay between the approval of the renewal of alcohol licenses, many businesses faced a susceptibility to rogue enforcement.
- Busking Licenses
- To Waive State License Fee for Buskers of RM 20 for 2022.