Editor’s Note: This is a press release by President of Arts, Life Festival and Events Association (ALIFE), Rizal Kamal. It was emailed to all media organisations on December 16, 2021. 

The Arts, Live Events and Festivals Association (ALIFE) which represents performing arts and live events industry in Malaysia including the actors, singers, performers, artists, event producers, promoters, performance art providers, service providers, venues, and all stakeholders in the industry urge government to reconsider the entertainment duty on ticketed performing arts and cultural stage performances with an audience.

Referring to the letter issued by the Selangor State Treasury dated 17 February 2021 (PWN.SEL.700-1/16/1(9)) entitled “PEMAKLUMAN KADAR BAHARU DUTI HIBURAN BAGI AKTIVITI KESENIAN ATAU PEMENTASAN ARTIS TEMPATAN DAN ARTIS LUAR NEGARA DI NEGERI SELANGOR” which lists a collection of 15% entertainment duty on all arts and stage performance by local artists and a collection of 25% entertainment duty on all arts and stage performance by international artists starting 1st January 2021, ALIFE would like to appeal for the following support of:
.

• A. The collection of 0% entertainment duty on all arts and stage performances by local artists; and
  .
• B. The collection of 5% entertainment duty on all arts and stage performances by international artists.
  .
• C. The waiver to apply until 2026 to allow the industry to recover.

“Entertainment tax for stage performances in Selangor had always been 5% or below over the years as the Selangor government understood the plight and workings of the industry. To increase it to 15% – 25% during the pandemic is unreasonable and will kill off all stage activities in the State.” – Rizal Kamal, President ALIFE.

ALIFE believes that the appeal is reasonable in light of the current state of recovery of the creative industry in Malaysia.
.

1. The pandemic has left a lot of performance venues, producers, artists, and crews without income and livelihood for nearly 2 years.
   .
2. Maximum capacity in a venue is currently at a limit of the venue with social distancing in place, which equates to a maximum of 50% seating capacity due to social distancing requirements. This makes it even more difficult for shows to cover their total costs.
   .
3. The cost of producing a show has increased to adhere to SOPs and disinfection of the venue and also due to the ongoing supply chain disruptions.
   .
4. The market is currently very soft and challenging as people have less disposable income. Therefore, if the duty is passed onto the consumer, the increased ticket price will drive away potential audiences.
   .
5. 15% entertainment duty on all arts and stage performances by local artists is an undue heavy burden to the industry who are just recovering from elongated lockdowns. Even before COVID, the industry was already struggling to produce shows to cover its production costs. Many artists persevere with their craft out of sheer passion and love of the arts. The imposition of the duty could very well be the final nail in the coffin for many struggling artists and will set back the development of the performing arts industry for many years.
   .
6. The duty is required to be paid upfront in full (based on 100% of seats sold) BEFORE ticket sales as a condition for performance permits to be issued. For many smaller productions, this is simply out of their financial reach.
   .
7. Budget 2022 states that entertainment duty is reduced to zero to help the industry recover. This is applied in Federal Territories and some other States have followed suit. The State of Selangor will therefore be at a severe disadvantage as performers/producers will choose venues outside of Selangor.
   .
8. Over the years, the industry has always been given duty exemption or charged 5% entertainment duty. Hence this is an increase in the duty.
   .
9. We request the Selangor Government to waive the entertainment duty for arts and stage performances until the end of 2026 to allow the industry to fully recover.
   .
10. The industry’s appeal for immediate support is similar to the exemption that is already granted to theme parks in the state of Selangor from 1 January 2022 to 31 December 2026.
    .

The performing arts industry has suffered enormous losses and hardships due to the COVID-19 pandemic and the subsequent economic shutdowns. According to the latest Malaysian Government statistics, the creative industry employed 859,900 people in 2019, all of whom are now struggling to make ends meet. It is our urgent wish that the Selangor Government provide support to the creative industry by providing the full waiver of entertainment duty with immediate effect in order to save the livelihoods of the arts community.

Supporting Associations
1. Arts, Live Festival and Events Association (ALIFE)
2. Industries Unite – Coalition of 115 trade associations

Performing Arts organisations and representatives:
1. Amelia Tan (ACX Productions)
2. Dr. Ann Lee (Playwright & Researcher)
3. The Actors Studio
4. ASLI (Persatuan Angkatan Seni Lakon Interaksi, KL & Selangor)
5. CineMata
6. Dama Asia
7. Instant Café Theatre
8. IMM Musicworks
9. Insight Visuals
10. Instant Café Theatre Company
11. Kakiseni
12. Kam Productions
13. Kimmy Kiew (Theatre Director)
14. KongsiKL
15. Kuala Lumpur Performing Arts Centre (KLPAC)
16. LOL Asia
17. Lot’ng (theatrethreesixty)
18. My Dance Alliance
19. Oasis Productions
20. Panas Panas Theatre
21. Performing Arts Centre of Penang (penangpac)
22. Petaling Jaya Performing Arts Centre (PJPAC)
23. PH7

Learn more about ALIFE. Need a voice to amplify your art-related cause? Get in touch with us. Read more stories below:

The Malaysian Arts Industry Is Facing An Imminent Collapse

How Can Malaysian Arts Move Forward Post COVID-19?

93% Of Malaysian Artists Have Been Negatively Impacted By COVID-19. Here’s What You Can Do.

Cover image by Wan San Yip on Unsplash.