State Loses RM50 Million From Duty Exemption For Entertainment Sector

In view of the chalenges face by the entertaintment sector ie theme parks, cinemas, rides and other activities, the Selangor state gave expemption on duty for the entertaintment sector between January and September, this resulted in RM50 million in loss for the government.

According to Chief Minister, Dato Amirudin Share the decision to waive the tax was decided in the State Executive Council which was expected to effect collection for the year.

"The reduction will affect the progress and revenue of the state," he said at the winding up session of the 2022 development expenditure proposal at the Selangor State Assembly today.

However with the announcement of the National Recovery Plan and the phase of vaccination, the State Government had agreed to collect the tax from October 1 and coordinate the payment for next year taking into account the amount made this year.

On February 2, the Selangor Government exempted entertainment duty for entrance fees to theme parks throughout the state effective March 18, 2020 to December 31 this year.

Dato 'Menteri Besar said the was also a move by his governmen to offer financial support in the tune of RM26.35 million to ease the burden of operators in the sector affected by the Movement Control Order.

The tax was also reduced from 25 to five per cent for five years from January 1, 2022 to December 31, 2026 with a financial impact of RM21.04 million a year.




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