City may amend bill on entertainment

JAKARTA (JP): The City Council is currently debating an amendment to a 1996 bylaw proposed by the city administration on the taxation of commercial shows and games.

City councilor Lukman F. Mokoginta from the Indonesian Democratic Party (PDI) faction said Thursday that, in principle, the council had no objection to the content of the bylaw.

However, it demanded that the administration gain the council's approval when issuing its decree detailing the implementation of the bylaw.

"The governor should consult the council on, for example, ticket prices," he said.

The bill recognizes the governor as the only one who has the authority to set tariffs for performances, issue permits for a show, exempt an organizer from paying taxes and discount taxes organizers must pay for staging a show.

The future bylaw would allow tax exemptions for parties running massage parlors employing all blind masseuses or staging traditional performances, he said.

The exemption would also be given to governmental institutions organizing state funded entertainment.

Tax discounts given by the governor should not be more than 50 percent of ticket sales, he said.

He said the amount of taxes would vary according to the type of activity.

"It will be calculated based on the price of the entrance tickets," he said.

"The taxes will only be imposed on organizers who require the public to buy tickets to see or enjoy the performance," he added.

The proposed bylaw affects various businesses which offer public entertainment, such as theaters, discotheques, massage parlors, karaoke and singing halls, pubs, cafes which offer live music and billiard houses.

Managers of recreational parks, commercial exhibitions, circuses and ice skating rinks would also be required to pay taxes.

The tax, for example, could be set at 27.5 percent of the entrance ticket sales issued by first class theaters, 10 percent for art, dance and music performances, 20 percent for discotheques and 25 percent for massage parlors and saunas. Managers of recreation parks and commercial sports activities could be charged 10 percent of ticket sales.

If approved, the proposed bylaw would replace the existing Bylaw No. 7 of 1996, which regulates taxes for the entertainment sector. (cst)