PETALING JAYA: The government’s move to grant local artistes a full entertainment tax exemption in the Federal Territories is a step forward but the same should be accorded to international performers, say industry players.
Shirazdeen Abdul Karim, the executive producer of event management company Shiraz Projects, said the move encourages local talent to stage more concerts.
He was commenting on the Budget 2024 announcement by Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, about the entertainment tax revision – from the existing 25% to a full exemption for local performances in the Federal Territories, as well as a reduced 10% for international artistes and movie screenings.
“Although the tax for international artistes has been reduced to 10%, it can be better. A lot of international stars are choosing to stage concerts in other countries because they have low or no tax at all,” Shirazdeen said.
Under Budget 2024, the Malaysian creative industry expects to see a boost with the RM160mil allocation, while RM60mil has been set aside for the Digital Content Grant (DKD) to support the promotion of local works that embody national values.
The allocation also includes RM90mil for the Film in Malaysia Incentive (Fimi) to encourage filmmakers to continue producing movies of international standard and RM10mil for a matching grant scheme to support the creative arts community.
According to Anwar, the government plans to establish a special income tax rate ranging from 0% to 10% for film production companies, foreign movie stars and film crews filming movies in Malaysia.
Soundscape Records founder Mak Wai Hoo called it a win for the live music industry, which wants to return to Kuala Lumpur to hold more concerts.
“We are actively bringing in international artistes, and now KL seems like an attractive option. Initially, we were looking at switching to Selangor but now we will review the decision and try to do more shows in KL,” said Mak.
KRU Group president and CEO Datuk Norman Abdul Halim called the revised entertainment tax plan “a very good move, as it has been a long-term problem for the industry”.
Norman also applauded the planned special income tax rate (0% to 10%) for the film industry.
“In regard to the RM90mil for Fimi, it is important that the government prioritise Malaysian-owned IP (intellectual property) or Malaysian co-owned IP.
“This will allow us to do more co-productions with international companies because right now, a lot of the money is going to subsidising foreign productions to shoot here, and we do not actually own any equity in those IPs.”
