Defer licensing fees: Bar owners

PETALING JAYA: Bar owners are seeking a two-year deferment in music licensing fees and taxes to ease their recovery from the impact of the Covid-19 pandemic.

Vimal Balan, of Where Else Sports Bar in Sunway, told theSun that it costs them an additional RM10,000 annually to have music and “live” performances at their outlets.

“I rely heavily on music and sports to woo customers, especially those who walk in to enjoy the performance by a resident band.”

Vimal said that after having to close for more than three months because of the movement control order, he is now facing difficulty in making his annual licence fees payments.

“A moratorium on the licence fees will go a long way to help us.

“We can then engage more musicians to play at our venues, which would guarantee them good-paying gigs. At the same time, it will help us recover the losses accrued over these past few months.”

He said pub and bar owners would then be motivated to continue operations even after the moratorium on fees expires in two years.

“By then, hopefully the economy would have recovered, and more (operators) would be able to afford the licence fees and taxes, and that will ensure the musicians earn an income,” he added.

Allan Gunalan, of Richfield Corner, suggested that pubs and bars adhere to certain conditions to qualify for the moratorium.

“For instance, they can be made to not only hire the musicians but also be required to pay them a decent amount.”

He said the pub or bar could also be required to hire a certain number of musicians within the two years.

“This is to ensure that the moratorium benefits musicians who are now in dire straits, apart from helping us recover our losses.”

An entertainment business outlet is required to pay licence fees and taxes annually to the local authority and the state government.

Depending on the amenities available at the venue, bar operators are required to pay fees and taxes for “live” music, piped-in music, DJs, pool tables and dart boards.

The fees and taxes differ for restaurants and bars.