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Entertainment tax hike: WPC Revenue Dept. unaware

03 Dec 2020

By Sarah Hannan  The Western Provincial Council (WPC) Department of Revenue said it was unaware of a decision over the increment of entertainment tax for the year 2021. When The Morning contacted WPC Commissioner of Revenue G.A. Amarasekara to clarify as to whether a tax hike on increasing the entertainment tax from 10% to 12%, as reported, is in the works, she responded: “We have not issued such a notice nor have we discussed such a matter in the recent times.” The Morning contacted the Commissioner of Revenue following a news report which indicated that a state notice supposedly issued by the Western Province Governor indicated that a tax hike was likely on ticket sales at events such as variety entertainment shows and international sports events that will be held during the financial year of 2021/2022. The current entertainment tax on such activities is set at 10% of the total ticket sales across the board. However, once the tax hike purportedly applies, the organisers will have to pay a tax of 13% on the total ticket sales for international sports events, whereas for a variety entertainment show involving both local and foreign entertainers, the tax would be set at 12% of total ticket sales. At present, the entertainment tax that is imposed on movie tickets is 10%, while the tax on stage dramas, sporting events, and dinner dances is set at 8%, and is said to remain unchanged. Should the event be a fundraiser for critically ill artistes or a final concert for veteran artists above the age of 75, no entertainment tax is to be levied.  


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