Controversy over Entertainment Tax Increase, Hotman Paris Says There is Dirty Play by Officials

Kapanlagi.com - The 40-75 percent entertainment tax increase is felt to be very burdensome for entrepreneurs. Until now, this issue has not yet found a clear solution. Therefore, famous lawyer Hotman Paris Hutapea claims that there are officials who are playing dirty.

"Yesterday I met with Minister of Home Affairs (Tito Karnavian), today I met with Mr. Luhut (Coordinating Minister for Maritime Affairs), both of them agree that the 40 percent figure is unreasonable," said Hotman Paris when met at the Coordinating Ministry for Maritime Affairs and Investment of the Republic of Indonesia, Central Jakarta, Friday (26/1).

1. Reliable Information

Regarding this news, Hotman Paris stated that he received reliable information from the palace. He emphasized that President Joko Widodo was also angry because he was not informed about the details of Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD).

"It seems that the discussion did not reach the higher level at that time. Even according to the source I know officially from the palace, the President himself did not know about it. This means that there are subordinates who did not report it in detail," he continued.

2. Doesn't Want to Mention Names

When asked further, unfortunately, Hotman did not want to mention the names of the officials or which ministry he was referring to. He only provided a series of codes, including a figure he said had a different direction from Jokowi.

"There are certain individuals who want this business to close in Indonesia by using that (HKPD Law), even in some regions, they are already using 75 percent of the gross income. Does that make sense?" he said.

Not only that, Hotman urged local government officials to re-establish the tax rates for entertainment groups such as nightclubs, karaoke, nightclubs, bars, and steam baths/spas based on the old rates.

(kpl/irf/dwn)