VATupdate

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Indonesia Cuts VAT on Economy Flights for Eid Travel

  • Government reduces VAT on economy-class domestic flights to 5 percent
  • Government covers remaining 6 percent of VAT
  • Policy aims to ease travel costs during Eid al-Fitr holiday
  • VAT incentive applies to tickets purchased between March 1 and April 7, 2025
  • Flights must be scheduled from March 24 to April 7, 2025
  • Government also announced a 10 percent discount on airplane tickets for the 2025 Eid al-Fitr homecoming period
  • Government aims to make air travel more affordable and support the aviation industry
  • Estimated 193.6 million people traveled during last year’s Eid exodus
  • National Police estimates over 100 million people will travel during the peak period from March 28 to March 30, 2025

Source: jakartaglobe.id

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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