City may amend bill on entertainment

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)