Call President Jokowi Oppose Entertainment Tax Increase by 40-75 Percent, Hotman Paris: He's Angry

Kapanlagi.com - Regarding the controversy over the 40 to 75 percent increase in entertainment tax, it turns out that famous lawyer Hotman Paris Hutapea is also troubled by it. Therefore, on Monday (22/1), he along with Inul Daratista and other entertainment industry players stormed the Coordinating Ministry for Economic Affairs.

When met, Hotman said that President Joko Widodo opposes the increase in entertainment tax. He even mentioned that the President was not informed about the details of the 40-75 percent increase in entertainment tax.

"Since last week, Mr. Jokowi, the president, has not been reported with the details and he's angry. This is the information I received last week," said Hotman Paris.

"Since then, I have been actively making videos (protests). Finally, last Friday, a cabinet meeting led by the President was held and it was agreed that local governments can return to the old tax rates, and even reduce them," he continued.

1.

According to Hotman, President Jokowi instructed Minister of Home Affairs Tito Karnavian to issue a circular letter (SE) regarding the Guidelines for the Implementation of Specific Goods and Services Tax on Certain Arts and Entertainment Services based on Law Number 1 of 2022 concerning HKPD. Based on the circular letter, Hotman said that regional governments do not have to comply with the 40 percent tax.

"The contents of the circular letter, among other things, state that regional governments are not required to comply with the 40 percent tax. They have the authority to revert to the previous tariff or even reduce it. That is the content of the law, so it is not President Jokowi's order," he said.

2.

Based on the meeting with Airlangga and the circular letter from the Minister of Trade, Hotman urged local governments not to increase the entertainment tax rates for discotheques, karaoke bars, nightclubs, bars, and steam/spa baths. He and other entertainment business activists hope that the entertainment tax rates can return to the previous tariff.

"The President is very angry about the very high tax rates, and with the circular letter from the Minister of Trade, the main point is that it is allowed to return to the previous tax rates. Even reducing it is allowed. But we hope that returning to the previous rates is sufficient," he said.

(kpl/irf/phi)