Why does Matfa consider the Entertainment Duty Act an outdated burden on Malaysian families?

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Matfa Views the Entertainment Duty Act 1953 as an Outdated Burden Due to its Impact on Families and Lack of Competitiveness

The Malaysian Association of Theme Parks and Family Attractions (Matfa) considers the Entertainment Duty Act 1953 an outdated and burdensome piece of legislation because it imposes a significant tax on families seeking affordable leisure, a practice not mirrored in neighbouring countries, leading Malaysian families to seek entertainment elsewhere. This tax, levied at up to 25 per cent on tickets for theme parks, water parks, and family attractions, is directly borne by the public, placing an undue financial strain on them, particularly during economically challenging periods.
Tax Disproportionately Affects the Public

The Entertainment Duty Act 1953 mandates a tax of up to 25 per cent on tickets for various entertainment venues, including theme parks and water parks. Crucially, this financial obligation does not fall on the operators of these attractions but is instead directly passed on to consumers. Matfa argues that imposing this additional cost on families, referred to as "rakyat" or the public, during times of economic difficulty is inherently unfair and exacerbates the financial pressures faced by households.
Lack of International Competitiveness

Matfa highlights that Malaysia's approach to taxing family entertainment is out of step with regional competitors. Countries such as Thailand, Singapore, and Hong Kong do not implement similar entertainment duties on tickets for these types of attractions. This absence of such a tax in neighbouring nations creates a more attractive and affordable environment for leisure activities, thereby impacting Malaysia's own tourism and family entertainment sector.
Driving Families Abroad for Leisure

The financial burden imposed by the Entertainment Duty Act is reportedly influencing the travel decisions of Malaysian families. Reports indicate that families are increasingly choosing to travel to destinations like Hat Yai in Thailand for their leisure activities. This shift is attributed to the lower costs in these alternative locations, directly linked to the absence of the entertainment duty that inflates prices within Malaysia.

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Why does Matfa consider the Entertainment Duty Act an outdated burden on Malaysian families?

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