Hotman Paris Says Entrepreneurs Will Be Destroyed Due to the Impact of a 40-75 Percent Entertainment Tax Increase

Kapanlagi.com - Famous lawyer Hotman Paris Hutapea, apparently also feels the negative impact of the entertainment tax increase. According to him, the increase in the entertainment tax rate will actually destroy the business owners themselves.

This will also cause a domino effect, where unemployment rates will increase due to businesses eventually closing down. In relation to this matter, Hotman Paris and Inul Daratista visited the Coordinating Ministry for Economic Affairs on Monday (22/1) to discuss the entertainment tax increase.

From the results of the meeting, the issue of the tax increase will be passed on to the consumers themselves, meaning that business owners will not only pay the taxes.

"This is considered destructive. Earlier, Minister Airlangga Hartarto admitted that 40 percent of the tax will be passed on to consumers. If they don't pay, it means the company will pay. That means 40 percent of the gross income," said Hotman Paris.

1. Business Actors Will Definitely Lose

KapanLagi.com/Muhammad Akrom Sukarya

Hotman believes that if an entertainment tax is imposed at a rate of 40 percent, it will harm his business. This is because entrepreneurs also have to pay food and beverage taxes, as well as employee taxes.

"Imagine 40 percent, even though the company's profit is unlikely to be only 10 percent. If 40 percent of gross income has to be paid in taxes, then 10 percent of the profit must already be used to pay taxes to the government," he said.

"Then where does the other 30 percent come from? Yes, from capital. Not to mention the 22 percent trade tax, individual entrepreneur tax, progressive tax, employee tax," he added.

2. Overall Tax Almost 100 Percent

In addition, Hotman Paris also stated that overall business actors almost pay taxes amounting to 100 percent. If implemented, it is certain that the entertainment industry will truly perish.

"So employers have to pay taxes again, not to mention the 10 percent beverage VAT, if calculated, we pay almost 100 percent taxes. So, if the goal is to destroy us, don't use the law, don't issue permits," he concluded.

(kpl/irf/sry)