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Why extra RM60? Music venue Merdekarya questions Selangor’s local artiste tax exemption | Scoop
Screengrab, January 10, 2025
News

Why extra RM60? Music venue Merdekarya questions Selangor’s local artiste tax exemption

Co-founder Brian Gomez highlights his fight for separate licence category for arts venues called ‘arts premises licence’ to allow spaces to promote creativity

Main Author Image
Fabian Peter
Updated
9:00 PM MYT

 

KUALA LUMPUR – Merdekarya, a well-known live music venue in Petaling Jaya, is urging the Selangor government to simplify licensing processes and reduce taxes that are crippling small arts venues. 

Speaking to Scoop, co-founder Brian Gomez said: “For the longest time, we’ve been fighting for a separate licence category for arts venues, called a ‘lesen premis seni’ (arts premises licence), which would be tax-exempt and come with reasonable fees – similar to a normal café or trade licence at RM600 to RM800 per year.” 

Brian, who runs the venue alongside Melani Delilkan, believes that small venues like theirs are burdened by high fees and endless red tape, while larger corporate events benefit from tax exemptions. 

This comes after Merdekarya was recently hit with a RM3,760 tax bill, including RM1,860 for live music – an RM60 increase from previous years – and additional charges for “pipe music” and a venue tax. 

The venue highlighted its struggle in a recent series of posts on its official X account, describing the taxes as a major obstacle to survival. 

“Turns out the tax exemption announcement was a lie. Or something. Don’t know what,” the post stated. 

“When we asked why, they said the tax exemption is for ‘local artistes,’ not ‘live music’ – which presumably means only people miming to minus-ones qualify.” 

Merdekarya, which opened its doors to independent Malaysian musicians in 2013, fears that these financial burdens could force it to eventually shut down. 

The venue has already weathered significant challenges, including the Covid-19 pandemic, but says the latest tax demands may be too much to handle in the long run. 

In November last year, the Selangor government announced that it would lower the entertainment tax for foreign performers from 25% to 10% to attract more high-profile acts this year, in line with Visit Selangor Year 2025, while local artists remain exempt.

During the Selangor state Budget 2025 tabling, Chief Minister Datuk Seri Amirudin Shari revealed that ticketed exhibitions will also see duty reductions, while local artists will continue to enjoy duty-free status in the coming year. 

It is crucial to note that Merdekarya was exempted from paying the live music tax the last two years, but was required to do so this year. 

Scoop has reached out to the Selangor government for comments. – January 10, 2025 

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