Govt mulling lower entertainment tax to boost art, film industry

Govt mulling lower entertainment tax to boost art, film industry

Deputy communications and multimedia minister Zahidi Zainul Abidin says discussions will be held with state authorities.

Deputy communications and multimedia minister Zahidi Zainul Abidin said currently those in the art and film industry have to pay 25% entertainment tax to local authorities.
PUTRAJAYA:
The communications and multimedia ministry will hold a meeting with the state governments to discuss the proposal for entertainment tax to be cut or reduced, said its deputy minister Zahidi Zainul Abidin.

He said he would propose for local authorities not to impose excessive entertainment tax on the country’s art and film industry.

“If possible we want to ask local authorities not to impose very high (entertainment) taxes as currently they (art practitioners) have to pay 25% tax to local authorities.

“If the local authorities impose a very high entertainment tax, it will hamper the development of the film industry, and its quality,” he told reporters after launching a drama titled “Penanggal Mak Kiah”.

The collection of entertainment tax is under the jurisdiction of the local authority in the respective states, and presently the entertainment tax in Malaysia is 25%.

Previously, Muar MP Syed Saddiq Syed Abdul Rahman, proposed that entertainment tax should be cut to improve the country’s art and film industry.

Zahidi, in his speech at the event, said that the government, especially the ministry, gave full support to industry players to increase the number of local works, and increase the income of those involved in the creative industry.

He said that the government supported the efforts of local film and drama producers, by offering a digital content grant through the national film development corporation (Finas), an agency under the ministry.

From 2017 until June this year, allocations totalling RM180.8 million have been channelled to industry players.

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