SHAH ALAM, nov 22 — A total of RM17 million in entertainment duty was not collected in Selangor, a potential revenue loss to the Selangor State Treasury (PNS), according to the Auditor-General’s Report (LKAN).
The loss in revenue to the Treasury included theme parks amounting to RM11.41 million, RM4.09 million from sports competitions, RM530,000 from movie theatres, and RM176,760 from non-ticketed entertainment premises.
“The unapplied compound results in a potential loss of receipts amounting to RM87,000 with the total potential loss in entertainment money collection amounting to RM17 million,” according to LKAN, regarding the Financial Statements of the State Government and State Agencies as well as the Selangor State Compliance Audit Year 2022.
The report said the collection of entertainment duty by PNS was not done in accordance with the rules and acts, resulting in weaknesses in collection and monitoring.
“Part of the entertainment duty collection has not yet been made, and there are arrears by entertainment premises causing potential revenue loss to PNS.
“In addition, the collection was not in accordance with the rate, and the difference in the calculation of the 2021 adjustment resulted in the entertainment duty being under-collected.
“Following that, to ensure that the collection of entertainment duty is improved in accordance with the law and regulations, PNS need to take action, including obtaining the uncollected and under-collected entertainment duty,” it stated.
Monitoring and enforcement activities should also be enhanced to ensure that payments were made according to the actual type of entertainment carried out.
“PNS also needs to take appropriate action against any entertainment owner operating without a licence and help them apply for a valid licence,” said the report.
— Bernama
