Jakarta Increases Tax on Entertainment Venues Up to 40 Percent
- Istimewa
Jakarta – The Provincial Government of DKI Jakarta has established the rate of Specific Goods and Services Tax (SGST) for the entertainment category at 40 percent for nightclubs, karaoke establishments, nightclubs, bars, and steam baths/spas.
This regulation was enacted on January 5, 2024, as outlined in Regional Regulation Number 1 of 2024 concerning Local Taxes and Regional Levies, signed by the Acting Governor of DKI Jakarta, Heru Budi Hartono.
Pj Gubernur DKI Jakarta Heru Budi Hartono
- VIVA/Rahmat Fatahillah Ilham
"Specific rates for SGST on entertainment services in nightclubs, karaoke establishments, nightclubs, bars, and steam baths/spas are set at 40 percent," states Article 53, paragraph 2, quoted on Thursday.
Furthermore, Article 53, paragraph 1 explained that the SGST rates for food or beverages, hotel services, parking services, and artistic and entertainment services are set at 10 percent.
The deadline for completion is targeted for January 25, according to the existing regulation. Meanwhile under the previous regulation, namely Regional Regulation No. 3/2015 of the DKI Jakarta Province, the tax rate for nightclubs to bars was 25 percent.
"The tax rate for nightclubs, karaoke establishments, bars, live music, music with Disc Jockeys (DJs), and the like is 25 percent," it stated.
Meanwhile, the tax rate for massage parlors, steam baths, and spas was previously set at 35 percent.
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