2024 Budget: Government To Reduce Entertainment Tax Rate For Federal Territories

Local artists have voiced out their concerns saying the 25% tax is quite high and it hinders their creativity.

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In tabling the 2024 Malaysia Madani Budget today, Prime Minister Datuk Seri Anwar Ibrahim announced that the government is proposing to reduce the entertainment tax rate in the Federal Territories for various parties from the initial 25 percent.

This is because local artists have consistently voiced their concerns that the 25% tax rate is excessively high and does not provide encouragement for creativity and valuable performances.

Hence, following the decision by the State of Selangor to reduce the entertainment tax rate, the government also wishes to do the same for entertainment businesses in the Federal Territories from 25 percent to the new rates as follows:

Full exemption of entertainment tax for local artist performances
Reduction to 5 percent entertainment tax for theme parks, family recreation centres, indoor gaming centres, and simulators
Reduction to 10 percent entertainment tax for international artist performances and other entertainment events such as film screenings and sports and games

In addition to that, Datuk Seri Anwar Ibrahim also implores the state government to consider reducing the entertainment tax for their own local creative talents so that tourism activities in the country can be promoted.

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