TEMPO.CO, Jakarta - The government through the Ministry of Finance officially covers Value-Added Tax (VAT) partially for domestic economy class airplane tickets for 2025 Eid homecoming. This policy will be effective on March 1, 2025 following Minister of Finance Regulation Number 18 of 2025.

Finance Minister Sri Mulyani Indrawati revealed that this tax incentive is valid for airplane tickets purchasing from March 1 to April 7, 2025, with a flight period between March 24 and April 7, 2025.

"All domestic economy class airplane tickets purchased during this period will receive a reduction in VAT, so the public will only pay a 5 percent tax, while the remaining 6 percent will be covered by the government," said Sri Mulyani in a press conference at Soekarno-Hatta Airport, Tangerang, Banten, on Saturday, March 1, 2025 as quoted from Antaranews.

She added that this policy is expected to lower airplane ticket prices by 13-14 percent. This step is part of the President's directive to assist the public, particularly during the high mobility of the Eid homecoming. The government wants to ensure that the public can travel more lightly without the burden of excessively high costs.

This policy is believed to directly impact the reduction of domestic airplane ticket prices during the homecoming. With the government covering a portion of the VAT, ticket prices will be more affordable for the public, especially for those who intend to return to their hometowns to celebrate the Eid holiday with their families.

This policy benefits the public and supports the national aviation industry's recovery from the pandemic's impacts and high operational costs. With this fiscal incentive, airlines hope to adjust their fares and provide more affordable services. The government also hopes that this step will increase the number of airplane passengers during the homecoming season, thus contributing to the growth of the aviation sector.

The Minister of Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), also supports this policy. "This incentive is expected to increase people's purchasing power and drive economic growth in the air transportation sector," he said on the same occasion.

Besides airplane ticket prices, President Prabowo Subianto also directed toll fees adjustment during Ramadan and Eid al-Fitr 1446 H/2025 M for public mobility. The adjustment will be carried out until Nyepi day this year. 

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