KUALA LUMPUR: A coalition representing Malaysia's entertainment, tourism and creative industries has called on the government to abolish the country's entertainment tax, saying the decades-old levy has become a burden on consumers and is undermining the nation's competitiveness.
Industries Unite, together with representatives from the entertainment, tourism, theme park, attraction, cinema, cultural, fashion and creative economy sectors, urged the Federal and state governments to jointly review the Entertainment Duty framework and develop a roadmap towards its eventual abolition.
The coalition said the Entertainment Duty, introduced in 1953 when entertainment was regarded as a luxury, no longer reflected today's economic realities, where cultural, recreational and tourism activities contribute significantly to economic growth, employment and national development.
Industries Unite spokesperson Datuk David Gurupatham said the issue extended beyond businesses and directly affected ordinary Malaysians through higher ticket prices.
"At its heart, this issue is about accessibility for Malaysians. Entertainment, tourism, culture and creative experiences are no longer luxuries. They are part of family life, community wellbeing, tourism growth and the creative economy.
"Removing this tax will make experiences more affordable for Malaysians and help the industry grow in a more sustainable way," it said in the statement on Saturday (July 4).
The coalition said entertainment tax rates could reach as high as 25%, increasing the cost of visits to theme parks, cinemas, attractions, concerts and other cultural and recreational activities.
It said that lower ticket prices would encourage greater public participation while generating wider economic benefits through increased spending on accommodation, food and beverage, transport and retail.
Industries Unite said abolishing the tax would also strengthen Malaysia's creative economy by improving attendance at events and creating more opportunities for performers, musicians, actors, writers, producers, technicians and other creative professionals.
The coalition added that reducing ticket prices would encourage greater private investment and enable operators to reinvest in world-class venues, attractions and productions.
It also warned that Malaysia risked losing its competitive edge in attracting international productions, major events and tourists, noting that several regional destinations, including Singapore, Hong Kong and Australia, no longer imposed dedicated entertainment duties.
While acknowledging that entertainment tax remained a source of revenue for state governments, Industries Unite said reforms should begin through closer cooperation between Putrajaya and the states.
Pending its abolition, the coalition proposed interim measures including lower tax rates, wider exemptions, clearer classifications and harmonised implementation across states.
Industries Unite said removing the tax would make entertainment and family experiences more affordable while supporting tourism growth, local talent and broader economic activity.
