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• By Lin Hsin-han and Sam Garcia / Staff Reporter, with Staff Writer

The abolition of entertainment taxes would support the development of the entertainment industry, Chinese Nationalist Party (KMT) lawmaker Yeh Yuan-chih (葉元之) said yesterday, calling on the central government to abolish the tax nationally.

The Amusement Tax Act (娛樂稅法) stems 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 work less to undertake leisure activities.

However, the tax is contradictory in today’s commercial society, especially considering that the government encourages people to participate in leisure activities and subsidizes the film and sports industries, he said.

Photo: CNA

The Executive Yuan in September approved an amendment to the Amusement Tax Act, allowing local governments to suspend tax collections on specific events, such as baseball games and concerts.

Taipei Mayor Chiang Wan-an (蔣萬安) on Thursday announced plans to completely suspend entertainment taxes to promote the development of Taipei Dome’s economy and the arts, culture and sports industries.

Taipei’s annual tax revenue is about NT$200 million (US$6.16 million), accounting for 0.24 percent of the city’s total tax revenue, according to the annual report of the Taipei City Revenue Service.

Yeh yesterday praised Taipei’s plan to suspend the tax and applauded local leaders for promoting urban business opportunities and industrial development.

A comprehensive review of tax policy and the abolition of the entertainment tax would create a friendlier environment for the development of the entertainment industry, Yeh said. He also encouraged the government to adopt a progressive perspective.

Asked for comment, Kaohsiung Mayor Chen Chi-mai (陳其邁) said yesterday that the concert economy is not just about the venue; it also requires extensive services to meet the needs of participants, including transportation and accommodation.

The local government is willing to implement policies, including adjusting taxes, to help Kaohsiung become more internationally competitive in the film, television and music industries, Chen said.

Additional reporting by Wang Jung-hsiang