THE Auditor-General’s Report showed the Selangor Treasury suffered revenue losses due to the non-collection of RM17 million in entertainment duties.

The report said the revenue lost was from theme parks (RM11.41 million), sports competitions (RM4.09 million, movie theatres (RM530,000) and non-ticketed entertainment premises (RM176,760).

“Compounds not applied caused a potential loss of receipts amounting to RM87,000, with the total potential loss in entertainment money collection amounting to RM17 million,” according to LKAN regarding the Financial Statements of the State Government and State Agencies as well as the Selangor State Compliance Audit Year 2022.

The report said the Selangor Treasury’s collection of entertainment duties was not done by the book, resulting in weaknesses in enforcement and monitoring.

“Part of the entertainment duties collection has not yet been done, and there are arrears by entertainment premises, causing potential revenue loss to the Treasury. The collection was not done in accordance with rates and differences in calculation of the 2021 adjustment, resulting in the under-collection of entertainment duties.

“To ensure the collection of entertainment duties is improved in accordance with the law and regulations, the Treasury must take action, including by obtaining uncollected and under-collected entertainment duties,” the report said.

It also said monitoring and enforcement activities must be enhanced to ensure payments were made according to the type of entertainment carried out.

“The Treasury must also take appropriate action against any entertainment owner operating without a licence, and help them apply for valid licences,” it said. – Bernama, November 22, 2023.