Why is Matfa urging the federal government to abolish the Entertainment Duty Act?

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Matfa Urges Abolition of Entertainment Duty Act Due to Public Burden and Lack of Competitiveness

The Malaysian Association of Theme Parks and Family Attractions (Matfa) is advocating for the federal government to abolish the Entertainment Duty Act 1953. Matfa argues that this Act imposes a significant tax of up to 25 per cent on tickets for theme parks, water parks, and family attractions, with the financial burden falling directly on the public rather than the operators. This outdated legislation is seen as an unnecessary imposition on families seeking affordable leisure opportunities, particularly when compared to neighbouring countries.
Outdated Legislation Increases Costs for Families

Matfa describes the Entertainment Duty Act 1953 as an outdated piece of legislation that places an additional financial burden on Malaysian families. The Act mandates a tax of up to 25 per cent on tickets for various attractions, a cost that is ultimately borne by consumers. This is particularly concerning during challenging economic times, as it directly impacts the affordability of family outings and recreational activities.
Competitive Disadvantage Compared to Regional Neighbours

The association highlights that Malaysia's regional competitors, including Thailand, Singapore, and Hong Kong, do not impose similar taxes on entertainment and attraction tickets. This lack of a comparable tax in neighbouring countries creates a competitive disadvantage for Malaysia's tourism and entertainment sectors. Matfa specifically notes that Malaysian families are increasingly choosing to travel to destinations like Hat Yai in Thailand due to the more affordable experience offered by the absence of such duties.
Impact on Affordability of Leisure Activities

The primary contention from Matfa is that the Entertainment Duty Act directly affects the affordability of leisure activities for the general public, referred to as "rakyat." By taxing tickets, the Act makes it more expensive for families to engage in recreational pursuits. Matfa's stance is that during periods of economic difficulty, it is inappropriate to levy taxes on families, suggesting that resources should instead be focused on supporting rather than taxing family-oriented entertainment.

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Why is Matfa urging the federal government to abolish the Entertainment Duty Act?

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