PETALING JAYA: A Budget 2024 proposal to increase the service tax for karaoke is not hitting the right note with fans.
Self-employed Muhammad Hamzah Hassan, 28, who goes for karaoke at least once a week, said that such a move would be a killjoy for “singers” like him.
“I think it’s a burden to the people and would put a strain on the business.
“I go karaoke with my friends because that is something we enjoy as a group.”
“This will definitely put a dent on the happiness of people, as it reduces the options of affordable entertainment,” he said when contacted.
The Budget 2024 rollout last Friday outlined a plan to raise the service tax rate from 6% to 8%.
“The government intends to expand the scope of taxable services, including logistics, brokerage, underwriting and karaoke services,” said Prime Minister Datuk Seri Anwar Ibrahim.
However, the increase would not apply to services such as food and beverages as well as telecommunications.
Another karaoke fan, student Siti Syairah Mohd Salleh, said that she was upset with the possibility that the rates for her karaoke sessions would go up.
“Usually, I will go karaoke with my friends during the weekend. The charges are quite affordable for us as we split the bill,” said Siti Syairah, 19.
“As the price may go up now, I don’t think we will go karaoke often,” she said.
Sim Wee Haw, 29, a clerk, was also unhappy over the proposed increase in sales tax for karaoke services.
“Is this an easy way for the government to collect money? The people will suffer if the cost of our karaoke sessions goes up,” said Sim, 29.
“They need to look at other ways to increase tax,” he said.
K Song Family KTV managing director Datuk Song Kee Chai said that he understood the need for the government to increase the sales tax to stimulate the economy but there should be a win-win situation to ensure that the taxes would not add to the people’s expenses.
“For me personally, they should just maintain it for now so that it will not burden the public.
“People will be unhappy and complain about such changes,” said Song.
He also said that there would be no increase of rates at all three of his outlets in Aeon Mall Shah Alam, Klang Parade and in Kuala Selangor.
