Jokowi Asks Three Ministers to Resolve Entertainment Tax Defamation
- Bandwagon Asia
Jakarta – The Indonesian President Joko Widodo (Jokowi) has asked three ministers to face the defamation from businessmen regarding entertainment tax at the Constitutional Court (MK).
The three ministers are Finance Minister Sri Mulyani, Minister of Law and Human Rights Yasonna H Laoly, and Minister of Tourism and Creative Economy Sandiaga Uno.
"There is a power of attorney from the president on behalf of the Indonesian government. Three ministries that will face the lawsuit at the MK, namely the Ministry of Finance, the Ministry of Law and Human Rights, and the Ministry of Tourism and Creative Economy," Minister Uno said on Thursday.
Presiden Joko Widodo atau Jokowi
- ANTARA/Mentari Dwi Gayati
Minister Uno explained that the Government is currently urging Regional Governments to grant incentive authority in the form of entertainment tax reduction to businessmen.
"We have made the decision that Regional Governments are directed to provide incentives so that businessmen do not feel burdened," the Minister remarked.
He explained that several tourist destination areas such as Bali and Labuan Bajo have already implemented tax relief for entertainment entrepreneurs.
"Some regions like in Bali, Labuan Bajo have made adjustments. Many Regional Governments have made adjustments,"
The benefits of these incentives can be utilized by Regional Governments through the Circular Letter of the Minister of Home Affairs regarding guidelines for regional heads to provide tax incentives to entertainment business actors.
As known, the Government has set the entertainment tax rates, especially for karaoke, nightclubs, bars, and steam baths/spas at 40 percent maximum 75 percent.
This is stipulated in Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (HKPD).
