The abolition of amusement taxes would support the development of the entertainment industry, Chinese Nationalist Party (KMT) Legislator Yeh Yuan-chih (葉元之) said yesterday, calling on the central government to abolish the tax on a national level.
The Amusement Tax Act (娛樂稅法) originates from the Feast and Amusement Tax Act (筵席及娛樂稅法) enacted in 1942, Yeh said, adding that the tax served a wartime purpose of encouraging people to work more and engage in less leisure activities.
However, the tax is contradictory in today’s commercial society, especially considering the government encourages people to engage in leisure activities, and subsidizes the film and sports industries, he said.
Photo: CNA
The Executive Yuan approved an amendment to the Amusement Tax Act in September, allowing local governments to suspend taxation on specific events, such as baseball games and concerts.
Taipei Mayor Chiang Wan-an (蔣萬安) on Thursday announced plans to completely suspend amusement taxes to promote the development of the Taipei Dome’s economy, and the arts, culture and sports industries.
Taipei’s annual amusement tax revenue is about NT$200 million (US$6.16 million), which accounts for 0.24 percent of the city’s total tax revenue, the Taipei City Revenue Service’s annual report showed.
Yeh yesterday praised Taipei’s plan to suspend the tax, applauding local leaders for promoting urban business opportunities and industrial development.
A comprehensive review of taxation policies and abolition of the amusement tax would create a friendlier environment for the entertainment industry’s development, Yeh said. He also encouraged the government to adopt a forward-thinking perspective.
Asked for comment, Kaohsiung Mayor Chen Chi-mai (陳其邁) yesterday said that the concert economy is not just about the venue; it also requires comprehensive services to meet the needs of attendees, including transportation and accommodation.
The local government is willing to use policies, including adjusting taxation, to help Kaohsiung become more internationally competitive in the film, television and music industries, Chen said.
Additional reporting by Wang Jung-hsiang
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