Datuk Yusof Haslam meets PMX for entertainment duty concerns

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Datuk Yusof Haslam meets PMX for entertainment duty concerns

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Writer: Heidi Hsia

Datuk Yusof Haslam shares concern that tax burden will squeeze producers and cinemas

21 Jan - Skop Productions founder Datuk Yusof Haslam recently revealed that he had a meeting with the Prime Minister of Malaysia, Datuk Seri Anwar Ibrahim to discuss the issues concerning the creative industry, especially on the topic of the current entertainment duty.

The filmmaker, who is also the advisor to the Malaysian Film Producers Association (PFM), said that the 20-minute meeting was a way for him to share the concerns of industry players regarding the 25 percent tax rate.

"I raised the issue of the high entertainment tax of 25 percent because the highest rate is only around six percent overseas," he said. "However, in our country, taxes are levied at up to 25 percent, while the lowest so far is in the Federal Territory, which is 10 percent."

Yusof stated that the high tax structure is not just a burden to filmmakers but cinema operators as well.

Datuk Yusof attended the meeting with daughter and Skop Production's CEO Syamin Yusof

"Let's say, a film made RM 10 million. That means RM 2.5 million has to be paid to the government as tax, while the rest to be divided between the production companies and cinema operators. As a result, the profit margin decreases between the two parties," he said.

The director believes that by lowering the percentage, it will not only help producers from the risk of bearing losses, but also help cinema operators to continue to maintain business during the tough economic situation.

As to Datuk Seri Anwar's response to the issue, Yusof stated that the Prime Minister has acknowledged it and will be discussing the matter with representatives of the state governments.

"I am thankful for his willingness to listen to industry players. I hope that the meeting will be the start of a more positive outcome for the industry," he added.