VAT Incentive for Domestic Economy Air Tickets Over Christmas

The Ministry of Finance Regulation No.71/2025 (PMK 71/2025) introduces a value-added tax (VAT) incentive for domestic economy-class air tickets. The incentive applies to tickets purchased from 22 October 2025 to 10 January 2026 for flights scheduled between 22 December 2025 and 10 January 2026.

According to Articles 2(3)‑(4) of the regulation, VAT remains due but the government bears 6 % of the taxable amount (which includes base fare, fuel surcharge and other fees), while the buyer pays only 5 % VAT. The taxable base therefore covers all ticket components, not merely the base fare.

Consequently, travelers pay a reduced VAT portion, although the tax is not fully exempted. Eligibility requires economy-class tickets and strict compliance with the purchase-and-flight date windows specified in the regulation.