Cinema operator expects a dip in admission with GST
Malaysia’s largest cinema operator Golden Screen Cinemas (GSC) will not offset any rise in ticket prices due to the Goods and Services Tax (GST) next April and is bracing for a fall in admission.
Malaysia’s largest cinema operator Golden Screen Cinemas (GSC) will not offset any rise in ticket prices due to the Goods and Services Tax (GST) next April and is bracing for a fall in admission.
Cinema-goers will face taxes of 31 percent of ticket prices with the introduction of the six percent GST, which is levied on top of the 25 percent entertainment duty.
"At this point in time, there is no indication of reducing cinema ticket pricing with the implementation of six percent GST this coming April 1, 2015," GSC said to an email to Malaysiakini .
GSC expects a dip in admission following the new tax but will mitigate this with promotions and the screening of more blockbuster movies.
"Going to the cinemas for movies is part and parcel of today’s out of home entertainment.
"Key drivers for cinema admission are the contents/movies and the ticket affordability factor," it said in a separate email.
Entertainment news portal Cinema Online said that cinema-going will be pricier come next April as GST will not only be levied on cinema tickets but also snacks like popcorn, which is usually part of the experience.
The portal said cinema tickets will not be among of the hundreds of goods said to be cheaper with the introduction of GST as the sales and services tax (SST) is not levied on cinema tickets.
The government said the goods will be cheaper because the six percent GST will replace SST, which is levied at a higher rate of up to 15 percent.
In response, cinema-goers commenting on the portal’s Facebook page said they will opt to either buy pirated DVDs or stream movies online if cinema tickets become more expensive.
Cinema tickets in the Klang Valley range from as low as RM7 to as high as RM70 depending on cinema class, time, film and location.
JAKE CARTER is a trainee reporter at Malaysiakini .


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