40 Percent Entertainment Tax Rule Cancelled, Indonesian Minister Ensures
- VIVA.co.id/Arianti Widya
Jakarta – The Indonesian Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan, confirmed that the imposition of an entertainment tax of 40-75 percent for entertainment service businesses will not be enforced.
The minister emphasized that the rules related to this will return to the old rules, namely the Regional Tax and Regional Retribution Law (PDRD Law) as a reference.
"Back to the old one. Because it's a pity if all the jobs of 20 million people are closed. It's not right then," said Minister Panjaitan when met at his office on Friday.
The PDRD Law is known to be the applicable regulation before the Law on Financial Relations between the Central Government and Regional Governments (HKPD Law) was agreed upon by the DPR and the government.
Menkomarves Luhut Binsar Pandjaitan
- VIVA.co.id/Maha Liarosh (Bali)
With the condition of the HKPD Law which is currently being challenged by the Constitutional Court (MK), the Minister of Finance also emphasized that his party will respect the legal process that is currently running at the Constitutional Court.
"Those who go to the Constitutional Court, let it go. Everyone has the right to go to the Constitutional Court for a judicial review, so don't say that it violates the Constitution or the law," the Minister remarked.
Minister Panjaitan also ensured that the judicial review lawsuit to the Constitutional Court was a normative procedure and not a violation.
“It is not a violation, it is a procedure carried out to test existing laws."
In addition, there is also a Circular Letter from the Minister of Home Affairs addressed to all relevant regents/mayors, with instructions on the implementation of Specific Goods and Services Tax (PBJT) on Arts and Entertainment Services by the provisions."
The circular letter of the Minister of Home Affairs was delivered so that the Regional Government can take steps," the Minister concluded.
