SHAH ALAM, Feb 2 — The Selangor government has agreed to fully exempt the entertainment tax imposed on entrance tickets to theme parks in the state from March 18, 2020 to Dec 31 this year, said Mentri Besar Datuk Seri Amirudin Shari.
He said the decision which had a financial impact of RM26.35 million on the state government was made after taking into account the number of theme parks in Selangor and the burden faced by the parties involved following the enforcement of the movement control order (MCO).
Amiruddin said the state government also agreed to reduce the entertainment tax rate from 25 per cent to five per cent on every entrance ticket to the theme park in Selangor for five years from Jan 1 next year until Dec 31, 2026.
“The implication of this rate reduction is that the Selangor government is estimated to lose a revenue of RM21.04 million a year for the five-year period,” he said in a statement today.
He said the spread of the Covid-19 pandemic and the implementation of the MCO since March last year had affected the services and manufacturing sectors besides transport and tourism, especially the income of theme park operators when it had to be closed and was unable to operate fully.
Theme park operators also need higher reinvestment costs compared to operators of other entertainment premises, to cover the cost of renovation, improve facilities as well as new attractions to lure visitors, he said.
“Theme park operators are among the key players boosting the tourism industry in Selangor. The development of the industry can improve the living standards of the people, especially the younger generation through employment opportunities.
“The development of the tourism industry such as theme parks will have a spillover effect on other sectors such as travel agencies, hotels, transportation and so on,” he said.
Amirudin said the continuity of businesses and industries was seen to be more secure apart from the fate of workers, especially in the tourism sector, which was also protected through the state government’s initiative.
In fact, he said, the state government would also continue to seek the best solution to help alleviate the plight of the people who are facing difficult times now. — Bernama