By Fitri Hazim Hazam
KUALA LUMPUR, Nov 14 — The National Film Development Corporation Malaysia (Finas) has expressed hope that the 2026 Selangor Budget will eliminate or reduce the entertainment tax for cinemas, to help bring up the industry and the quality of local production, as was done this year for entertainment tax for concert performers.
Finas chairman Dato’ Hans Isaac said this will directly assist cinema operators and movie producers and give them more room to improve on the quality of their craft.
"Under the guidance of Communications Minister Datuk Fahmi Fadzil, Finas wants to ensure that our local films will break into the international market.
"A reduction in taxes will mean that our producers have more funds to make better quality films," Hans said when met at the Finas headquarters recently.
He added that if done, cinemas will also be able to attract more moviegoers as ticket prices will naturally be lowered, although this requires careful monitoring.
"If the 25 per cent entertainment tax is cut, ticket prices should, by right, come down from RM20 to RM15. Finas will make checks on cinema operators to ensure they don't sell tickets using the old pricing."
For the 2025 Selangor Budget, the state government had cut entertainment taxes for local artistes and also reduced the rate for foreign acts from 25 per cent to 10 per cent. This followed discussions that were made prior to the Covid-19 pandemic — a move applauded by Hans.
"I am grateful to the Menteri Besar and the state government for their care towards our local entertainment industry, and their openness to discuss issues that matter to us," Hans said.
He added that Selangor is the most forward and proactive state when it comes to discussing tax rates, as other states, too, were approached, but it was Selangor who was fastest in giving clear feedback and suggestions.
“I hope other states will emulate Selangor because we make movies for everyone out there, not for ourselves.
"When a state like Selangor takes such a stand, it should be followed by others like Negeri Sembilan and Penang, for example."
Hans added that compared to other states, Selangor has shown a high level of commitment towards the film industry and comprehends its needs.
"But we at Finas understand that such taxes are earnings for the state government and not the Federal, and so the whole process must be carried out in proper stages."
