KUALA LUMPUR, Oct 31 — The reduction in entertainment duty rate from 25 per cent to five per cent for theme parks, family recreation and indoor game centres, as well as simulators, will encourage growth in these sectors with innovative and advanced technologies.
Malaysian Association of Theme Parks and Family Attractions (Matfa) honorary chairman Tan Sri Richard Koh said the incentive encourages reinvestment to upgrade new rides and attractions, as well as maintaining affordable reach for the community.
“People are always demand for new innovations and improved means of leisure, especially theme parks, to get away from the daily routine of work stress and spend quality time.
“Private developers have actually taken over the role of the local government in providing recreational activities for families.
“As in the past, the local government used to ask for a big budget from the federal government to build a recreation complex, such as a local swimming pool, for the people. State governments should focus on taxing other avenues rather than family recreation and entertainment,” he said to Bernama.
Moreover, he said, the government should view theme parks as a solution for social, cultural, economic, and job opportunities and as one of the leading tourism developments for local and international tourists.
“We humbly request the federal government to take one step further and remove the import duty tax of 30 per cent for importing theme parks and attractions equipment and machines.
“This will be more effective as a total package to empower the sectors, as there are no local theme park ride manufacturers in Malaysia to protect the asset,” he said.
In addition, Koh said the theme park industry should be recognised as a social obligation by the government by providing good infrastructure and not be associated with the outdated 1953 British Colonial Entertainment Tax Act.
“We are even asked to apply for a police permit when applying for theme parks and leisure operators’ licenses. In conclusion, we are definitely in the wrong category under this Act.
“Theme parks are 100 per cent family-oriented and should be encouraged to be tax-free, not be imposed double taxation for ticket admission and paying income tax,” he said.
— Bernama
