KUALA LUMPUR, Jan 2 — Movie and concert tickets, previously not subject to sales or service taxes, will be slapped with Malaysia’s new flat rate consumption tax of six per cent starting in April, English daily The Star reported today.
It quoted Royal Malaysian Customs Department GST director Datuk Subromaniam Tholasy as saying that the Goods and Services Tax will affect the services industry, including sectors not subject to service taxes.
GST, brought in to increase government revenue, replaces the sales and service taxes.
“Cleaning and maintenance services as well as the entertainment industry are among those that will be affected,” Subromaniam said,
Higher ticket prices are not likely to dent the entertainment industry, he added.
Prime Minister Datuk Seri Najib Razak, also Malaysia’ finance minister, said the GST is expected to rake in RM23.2 billion, although the final figure will be much smaller due to goods exempt from the consumption tax and as the government forgoes sales taxes established previously. The two are estimated at RM3.8 billion and RM13.8 billion respectively.
