TAIPEI (TVBS News) — Taiwan's entertainment industry has rebounded dramatically from pandemic lows, according to new government data released Monday (April 28). The Ministry of Finance (MOF, 財政部), Taiwan's national financial regulatory authority, reported entertainment tax revenue from professional performances soared 2.2 times compared to 2021 levels. Collections jumped from less than NT$40 million (US$1.23 million) to about NT$286 million (US$8.8 million), representing a sixfold increase that officials link directly to the post-pandemic revival of concerts and large-scale entertainment events across the island.
The entertainment tax represents a locally administered revenue source in Taiwan's tax system that applies to various leisure activities including movie theaters, concert venues, and KTV establishments (karaoke venues popular throughout East Asia). While local governments set their own rates subject to MOF approval, many jurisdictions have implemented significant reductions or complete exemptions for certain entertainment categories as part of broader economic stimulus measures aimed at post-pandemic recovery and job creation. The tax structure features graduated rates typically ranging between 0% and 10% for most entertainment categories, with notably higher rates — up to 25% — applied specifically to dance halls.
The pandemic's impact was starkly evident in 2021 when Taiwan's implementation of a Level 3 alert (the island's second-highest emergency response level) severely restricted public gatherings, causing entertainment tax collections to plummet with only 18,659 establishments contributing. Ministry data shows a substantial recovery by late 2024 with 21,421 businesses paying the tax, though this figure remains 2.6% below pre-pandemic 2019 levels when 21,985 establishments were taxed. The recovery has been uneven across sectors: KTV venues and amusement parks demonstrated robust growth with collection increases of 25.6% and 16.3% respectively, while internet cafes suffered a 15.2% decline as consumers increasingly shifted to mobile entertainment options.
The financial impact of the pandemic and subsequent recovery is clearly reflected in the overall entertainment tax figures, which contracted to NT$1.16 billion (US$35.7 million) in 2021 before surging to an unprecedented NT$2.09 billion (US$64.3 million) by 2024. Professional performances emerged as a significant growth driver, with their share of total entertainment tax revenue quadrupling from just 3.4% in 2021 to 13.7% in 2024, elevating this category to the fourth largest contributor. Regional variations are notable across Taiwan's municipal landscape: Taichung City leads in taxable entertainment venues with 13.4% of all establishments, while New Taipei City generates the highest revenue at 17% of total collections. Officials indicated that ongoing adjustments to local tax rates will likely influence future collection patterns. ★