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Indonesia: Government reduced the VAT on domestic flight services temporarily

Description

On 4 June 2025, the Minister of Finance of Indonesia issued Regulation No.36/2025, reducing the VAT on domestic flight services provided by domestic airline operators. The VAT is reduced from 12% to 5...

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Intervention Details

Intervention Type

Tax or social insurance relief

MAST Chapter

L: Subsidies (excl. export subsidies)

Implementation date

05 Jun 2025

Revocation date

31 Jul 2025

Implementation level

National

Affected flow

Inward

Announced as temporary

Yes

Eligible firms

all

Affected Trading Partners

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