The DGT emphasized that the concert tax is the authority of the local government

The concert tax becomes a local tax. In the Value Added Tax Law (UU VAT) the concert tax is not included, therefore we submit it to the regions

Jakarta (Armfalcon.com) – The Ministry of Finance’s Directorate General of Taxes (DJP) emphasized that concert taxes are the authority of regional governments (pemda).

Concert tax provisions are regulated in the entertainment tax provisions in the Law on Financial Relations between the Central Government and Regional Governments (UU HKPD).

“The concert tax is a local tax. In the Value Added Tax Law (UU VAT) the concert tax is not included, therefore we leave it to the regions,” said Director of Tax Regulations I of DJP Hestu Yoga Saksama when media briefings in Jakarta, Thursday.

On the same occasion, Expert Staff to the Minister of Finance for Tax Compliance, Yon Arsal, explained that the central government does receive entertainment tax reports every month. It aims to see the development of the industrial sector and indicators that have an impact on economic growth.

For example, the growth of the entertainment industry during a pandemic shows a recovery in the movement of people which then also has an impact on the growth of other sectors. So, entertainment tax reporting can be a comparison for economic growth from the public consumption side.

However, regarding the tax rate policy, this authority is fully delegated to the local government.

“The entertainment tax has been distributed. So, if it is already in the HKPD Law, we will no longer regulate it in the VAT Law,” Yon explained.

In the same vein, Director of Counseling, Services and Public Relations of DJP Dwi Astuti underlined that the entertainment tax authority lies with the local government. Therefore, people who are busy discussing Coldplay’s concert tax of 15 percent and an additional fee of 5 percent are not the decision of the central government.

Dwi gave an example, within the scope of Jakarta, entertainment tax provisions are regulated in DKI Jakarta Provincial Regulation (Perda) Number 3 of 2015 concerning Amendments to Regional Regulation Number 13 of 2010 concerning Entertainment Tax.

“We emphasize that it is the regional government’s authority to regulate entertainment taxes,” said Dwi.

“The concert tax is a local tax. In the Value Added Tax Law (UU VAT) concert tax is not included, therefore we leave it to the regions.

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source: www.antaranews.com

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