Jakarta. The upcoming value-added tax or VAT would not have a significant impact on concert pricing. In other words, there would only be a “slight increase” in how much a person has to pay to see their favorite bands, according to a promoter.

Indonesia will officially raise the VAT from the current 11 percent to 12 percent starting tomorrow. Dewa19 All Stars Promotor’s chief executive officer Sugiresky said that the 12-percent VAT would only affect a small component of the ticket pricing, namely the system management costs. The regional tax on the ticket will also remain at 10 percent.

“Promoters will follow the existing rules set by the government. But ticket prices will not increase that much [once the 12-percent VAT is in place],” Sugiresky was quoted as saying by state news agency Antara on Tuesday.

Sugiresky gave an example of a concert ticket that costs Rp 1 millionaire around $61.98. The management system makes up 5 percent of the total price, thus reaching Rp 50,000. With the 12-percent VAT, a concertgoer has to pay an extra Rp 6,000 in taxes for the management system costs.

“So we shouldn’t miscalculate the 12-percent VAT, and it should not have a huge impact on prices,” Sugiresky said.

The government has said that the upcoming VAT would focus on luxury goods that are typically consumed by the higher income individuals. Staple goods will not be subject to the taxes.

Musicians, both from home and abroad, have been holding concerts in Indonesia. The average ticket price varies, although the price to watch foreign musicians perform can reach millions of rupiahs. 

The tickets to the “Dewa 19 featuring All Stars 2.0” concert by the legendary Indonesian rock band of the same name range from Rp 600,000 to around Rp 1.7 million. Korean pop or K-Pop has grown popular in Indonesia in recent years. The tickets to the upcoming Right Here World Tour concert by K-Pop boy band Seventeen in Jakarta even costs up to Rp 3.8 million.

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