PETALING JAYA: The Selangor government has announced that it is granting full exemption on entertainment duty on entrance fees to theme parks in the state.
“The exemption is effective March 18,2020, until Dec 31,2021. This is expected to have a financial impact (loss) of RM26.35mil on the state government, ” Selangor Mentri Besar Datuk Seri Amirudin Shari said in a statement on Tuesday (Feb 2).
“We have also decided to reduce the entertainment duty rate from 25% to 5% on all entrance fees to theme parks in Selangor for five years, effective Jan 1,2022, until Dec 31,2026.
“This rate reduction will result in an estimated loss of revenue of RM21.04mil per year to the state government, over a period of five years.”
Amirudin said theme park operators require higher reinvestment costs compared to other entertainment operators, as they need to invest a significant amount in renovations, facility improvements and even new attractions to draw visitors.
“Theme park operators are one of the key players in boosting the tourism industry in Selangor, ” he said.
“The development of theme parks as a tourist attraction has a spillover effect on other sectors of the industry such as tour agencies, hotels and transportation.”
The entertainment duty waiver is expected to benefit theme parks located in Shah Alam, Bandar Sunway and Bangi, as well as reduce their financial burden due to the impact of the Covid-19 pandemic.
These attractions had to fully close throughout the movement control order, and limit the number of visitors when restrictions were lifted during the conditional MCO and recovery MCO.
“We hope that this move will provide some assurance to the theme park operators, in terms of their business survival and jobs for their staff, ” said Amirudin.
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