KUALA LUMPUR, July 4 — Several organisations representing Malaysia’s entertainment, tourism and creative industries are calling for a review of the country’s entertainment tax and urging the government to develop a clear roadmap towards its total abolition.
Industries Unite, together with the Malaysian Association for Arts, Live Events, Concerts and Festivals; Malaysian Association of Theme Parks and Family Attractions; Malaysia Shopping Malls Association; Malaysian Association of Film Exhibitors; Persatuan Karyawan Malaysia; MyFashionChamber; and the Sabah Film and Visual Association, said removing the tax is crucial to easing the financial burden on consumers.
Industries Unite spokesman Datuk David Gurupatham said where immediate abolition is not possible, the government should consider interim measures, including rate reductions, broader exemptions, clearer classifications and harmonised implementation across jurisdictions.
He said entertainment duty, commonly known as entertainment tax, was enacted in 1953 during a very different economic and social landscape, when entertainment was largely regarded as a luxury.
“Today, entertainment, tourism, theme parks, cultural and creative experiences are important contributors to economic growth, employment, tourism receipts, community well-being and national identity. At its heart, this issue is about accessibility for Malaysians. Entertainment, tourism, culture and creative experiences are no longer luxuries.
“Removing this tax will make such experiences more affordable for Malaysians and help the industry grow in a more sustainable way,” he said in a statement.
David said the entertainment tax rates can, in some cases, reach up to 25 per cent, adding significantly to the cost of participation for ordinary Malaysians who bear the impact directly or indirectly through higher ticket prices.
“Lower ticket prices would encourage greater participation in entertainment, cultural, tourism, theme park and recreational activities, while increased attendance would stimulate spending across hotels, food and beverage outlets, transportation services, retail businesses, and other sectors that benefit from visitor activity,” he said.
He said lowering or abolishing the entertainment tax could also generate a positive economic multiplier effect, where increased consumer spending, higher visitor volumes and greater business activity create additional income, jobs and tax revenues across multiple sectors of the economy.
“A family that saves money on ticket taxes is likely to spend that money elsewhere in the economy, creating broader economic benefits that extend beyond the initial ticket purchase,” he said.
David said the tax is also increasingly at odds with Malaysia’s aspiration to develop a globally competitive creative economy and become a leading tourism destination.
He said every ticket sold supports an extensive ecosystem of Malaysian creative workers, including performers, musicians, actors, comedians, dancers, designers, writers, producers, technicians, event crews and other creative professionals.
David said Malaysia also competes with regional destinations for tourism, major events, creative investments and international audiences.
He said many leading destinations, including Singapore, Hong Kong and Australia, have long moved away from dedicated entertainment duties as part of broader efforts to strengthen their cultural, tourism and creative sectors.
“A more competitive framework would strengthen Malaysia’s ability to attract international productions, global artistes, major events and private sector investment, while supporting the development of local creative industries,” he said.
Industries Unite acknowledged that the entertainment tax has been a longstanding source of state revenue and that policy reform would require cooperation between the federal and state governments.
“However, the time has come to begin the process of reform as Malaysians need more affordable family experiences, stronger tourism, thriving theme parks and attractions, a vibrant creative economy and policies that encourage participation rather than increase costs,” he added. — Bernama
