SHAH ALAM, June 22 — The state government is conducting a study on reclassifying licences for indoor children’s playgrounds, which are now in the entertainment category, said state executive councillor for local government and tourism Dato’ Ng Suee Lim.
He said he has taken note of indoor playground operators’ complaints that they have had to fork over entertainment duties of over RM6,000.
“We have held many meetings, actually. Because it is under the entertainment tax enactment, (the study) must be comprehensive. We found that elements of education are there,” he told the Selangor State Legislative Assembly during a special sitting here today.
“(We are studying the establishment of a new duty), which is (edutainment). This could prevent constraints of the entertainment duty enactment so we can lower the rate. We will try to help.”
Ng added that Selangor will engage with the Penang government to ensure both duties can be executed separately without amending the existing enactment.
He said the reclassification is expected to go smoothly with support from the Selangor State Education Department and other agencies.
Previously, media reports said Malaysian Association of Theme Park and Family Attractions (MATFA) urged the Selangor government to relook the licence classification of indoor playgrounds as entertainment centres.
MATFA president Richard Koh said the measure would hike these premises’ annual licensing fees nearly 13-fold if they remain in the entertainment category, the duties for which take effect next year.
Earlier, Selangor announced an entertainment tax rate cut from 25 per cent to 5 per cent on cinemas, theme parks, and concerts for five years from January 1, 2022, to December 31, 2026.
