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FINANCE Minister, Sri Mulyani Indrawati announced that the government will cover part of the Value Added Tax (VAT) for domestic economy-class airfare during the 2025 Eid al-Fitr homecoming period.
At a press conference held at Soekarno-Hatta Airport, Tangerang, Banten, on Saturday (03/1), 2025, Sri Mulyani outlined that the government’s policy is outlined through the Minister of Finance Regulation (PMK) Number 18 of 2025.
“From this PMK, we convey it will apply to ticket purchases made from March 1 to April 7 for travel taking place between March 24 and April 7, 2025,” she noted.
She explained that this PMK lowers VAT for all domestic economy-class airfares purchased between March 1 and April 7 for flights scheduled between March 24 and April 7. Hence, travelers will only be required to pay 5 percent tax, while the government covers the remaining 6 percent.
“The reduction is 6%, so only 5 percent will be paid, and it contributes, as explained earlier by the Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, to reducing domestic economy-class flight ticket prices by 13 to 14%,” Sri Mulyani remarked.
In line with the president’s directive, the government should continue to help the public, especially during crucial times like Eid al-Fitr, where scores of people travel to their hometowns.
Hence, the Ministry of Finance, in coordination with the coordinating minister for infrastructure and development and all relevant ministries, is working to provide relief for the public.
PMK Number 18 of 2025 on VAT for Scheduled Domestic Economy Class Air Transport Services Covered by the Government for the 2025 Fiscal Year aims to encourage economic growth and assist the people in fulfilling their homecoming needs for Eid al-Fitr. [antaranews]
