SHAH ALAM – A total of RM17 million in entertainment duty was not collected in Selangor, which is a potential revenue loss to the state’s treasury, according to the Auditor-General’s Report.
The report said the loss in revenue to the treasury included theme parks amounting to RM11.41 million, RM4.09 million from sports competitions, RM530,000 from movie theatres and non-ticketed entertainment premises amounting to RM176,760.
“The compound that is not applied causes a potential loss of receipts amounting to RM87,000 with the total potential loss in entertainment money collection amounting to RM17 million,” according to the A-G’s Report regarding the financial statements of the state government and state agencies, as well as the Selangor State Compliance Audit for 2022.
The report said that the collection of entertainment duty by the state treasury was not done in accordance with the law, resulting in weaknesses in collection and monitoring.
“Part of the entertainment duty collection has not yet been made and there are arrears by entertainment premises causing potential revenue loss to the state treasury. In addition, the collection not in accordance with the rate and the difference in the calculation of the 2021 adjustment resulted in the entertainment duty being undercollected.
“Following that, in order to ensure that the collection of entertainment duty is improved in accordance with the law and regulations, the state treasury needs to take action, including obtaining the uncollected and undercollected entertainment duty,” according to the report.
It also stated that monitoring and enforcement activities needed to be enhanced to ensure that payments were made according to the actual type of entertainment carried out.
“The state treasury also needs to take appropriate action against any entertainment owner operating without a licence and help them apply for a valid licence,” it said. – November 22, 2023