Government Plans 50% VAT Discount on Airfare for for Christmas and New Year Holidays

JAKARTA. The government will once again offer a Value Added Tax (VAT) discount on airline ticket purchases during the 2025 Christmas and 2026 New Year (Nataru) holiday season.

The facility to be provided will take the form of a government-borne VAT of 50%. This was revealed by Coordinating Minister for Economic Affairs, Airlangga Hartarto, on Monday (2/9) in Jakarta.

Quoting Kontan.co.id, the policy is currently in the finalization stage and is expected to be released in October 2025.

The aim of providing the 50% VAT facility on airline tickets includes supporting the tourism industry at the end of the year.

Proposed by the Ministry of Tourism and the Ministry of Transportation

Airlangga stated that the initiative was previously proposed by two ministries, the Ministry of Tourism and the Ministry of Transportation.

A similar policy was previously implemented by the government during the Eid al-Fitr holiday season, as stipulated in Minister of Finance Regulation (PMK) Number 18 of 2025.

Under that regulation, the government covered 6% VAT on airline tickets, calculated based on the effective VAT rate of 11% applied to 11/12 of the ticket price.

Meanwhile, the remaining 5% of the 11/12 portion of the ticket price had to be paid by consumers. (ASP/KEN)