Respond to Entertainment Tax 40-75%, Amstrong Sembiring: Unreasonable, Can Bankrupt Entrepreneurs!

Kapanlagi.com - News about the increase in tax rates and certain services (PBJT) in the entertainment category has caused quite a stir at the beginning of 2024, especially for business players. How come, taxes for entertainment venues such as karaoke, discotheques, bars, nightclubs, and spas have increased by 40-75%. This determination refers to Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments.

The Governor of DKI Jakarta, Heru Budi Hartono, has officially determined a 40 percent increase in entertainment tax on January 16, 2024. The policy is stated in Article 53 paragraph (2) of Perprov DKI Jakarta Number 1 of 2024 concerning Regional Taxes and Levies.

"Specific rates for Certain Goods and Services Tax on entertainment services at discotheques, karaoke, nightclubs, bars, and steam baths or spas, are determined at 40 percent," reads the policy set by Heru Budi Hartono.

The increase in tax rates has caused some business players to complain as it is considered irrational.

1. Harshly Criticized by Inul Daratista

JJ Amstrong Sembiring (Photo Credit: Personal Documentation)

Inul Daratista is one of the artists who strongly demands the increase in entertainment tax. Through her social media, the wife of Adam Suseno pours out all her grievances as a business owner of one of the popular karaoke brands, Inul Vizta. Inul also requests that the government reconsider Law No.1/2022.

"Entertainment tax has increased from 25% to 40-75% without clear rules!!!" one excerpt from Inul's writing on her social media account.

This has also caught the attention of Legal Practitioner, JJ Amstrong Sembiring. According to him, tax collection should be based on justice, both in legislation and in tax collection implementation.

2. Tax Collection Requirements

JJ Amstrong Sembiring (Photo Credit: Personal Documentation)

Amstrong Sembiring stated that the basis of justice is a requirement that must be fulfilled to achieve justice for the community. Where these requirements in tax collection are the fundamental principles that must exist in every tax collection activity.

According to him, there are 5 (five) tax collection requirements that must be met:
1. Justice requirement (tax collection must be fair).
2. Juridical requirement (tax collection must be based on the law).
3. Economic requirement (tax collection must not disrupt the national economy).
4. Financial requirement (tax collection must be efficient).
5. Simplicity requirement (tax collection system must be simple).

In essence, Amstrong Sembiring believes that the increase in entertainment tax by 40%-75% is about the Financial Relationship between the Central Government and the Regional Government (HKPD Law), which can completely bankrupt many businesses and, of course, this will have potential effects on consumers who may become reluctant to visit entertainment venues due to the high tax.

(kpl/gtr)