By Sherilyn Pang
SHAH ALAM, Feb 2 — The Selangor government has granted full entertainment duty exemption for theme parks’ entrance fees from March 18, 2020, until December 31, 2021.
Its Menteri Besar Dato’ Seri Amirudin Shari in a statement today said, as a result, the Selangor government is estimated to shoulder a total revenue impact of RM26.35 million.
He said the state administration had also agreed to reduce the entertainment tax rate from 25 per cent to 5 per cent for the entrance fees to all theme parks in the state over a duration of five years starting from January 1, 2022, to December 31, 2026.
“The measure would cost the Selangor an estimated total of RM21.04 million in financial impact a year over the five years’ period,” said Amirudin, after the state had taken into account the high number of theme parks that attract tourism in Selangor such as in Shah Alam, Putrajaya, Sunway and Bangi, and the financial impact they have to face during the movement control order (MCO).
Amirudin said theme park operators also require high reinvestment costs compared to other entertainment outlet operators.
“They need high investments in terms of renovation, facility upgrading and new attractions to keep attracting visitors,” he said.
Amirudin said that theme park operators are one of the main industry players that spur the state’s tourism industry adding that its expansion would improve local community living standards, especially the new generation through employment opportunities.
The expansion of the tourism industry in the form of theme parks, he said, provides multiple positive effects to other tourism sectors such as tour agencies, the hotel line and transportation, among others.
“The Covid-19 pandemic and the MCO since last March 18 have not only impacted the services and industrial sectors but also transportation and tourism, especially the theme park operators that were forced into complete shutdown.
“Therefore, it is hoped that the continuity of the industry and the business as well as the workers’ livelihoods will be more assured, especially in the tourism sector, with the accordance of such relaxation.
Amirudin said the Selangor government will continue to draft better solutions to lighten the people’s burden during the pandemic.
On last October 30, Amirudin had during the tabling of the state budget said that the Selangor government had set a new entertainment duty tax rate of 15 per cent, down from the previous 25 per cent, aimed at helping local entertainers hit by the economic impact of Covid-19.
He had said the new rate would be enforced on January 1.
