Member Of Commission V DPR Supports The Elimination Of VAT Airline Ticket Tickets To Make It Cheaper

ILLUSTRATION OF UNSPLASH/Edwin Petrus

JAKARTA - Members of Commission V DPR support the Ministry of Transportation's plan (Kemenhub) to abolish plane ticket taxes to lower ticket prices by up to 11 percent cheaper. The proposal is considered to be a strategic step to provide the best service for the Indonesian people in the transportation sector.

"The proposal to abolish plane ticket taxes has the potential to provide significant economic and social benefits. And of course it can be a solution to reduce the high price of airplane tickets that have been complained by the public," said a member of Commission V DPR, Irine Yusiana Roba Putri, Thursday, September 26.

In addition, Irine also assessed that the policy of opening the aviation fuel market for the private sector is very strategic. Moreover, he said, the high price of aviation fuel in Indonesia is the culprit for the high price of airplane tickets.

Many aircraft fuel or aviation fuel prices in Indonesia are complained of by foreign airlines because they are considered the most expensive in Southeast Asia. With the opening of the avtur market, prices will be competitive and not dominated by just one party," he said.

Not only about aviation fuel, but the Ministry of Transportation also proposes the abolition of aircraft parts taxes which are considered to contribute to the high price of aircraft tickets. If the aircraft parts tax is removed, Irine assesses that it can have a double effect on other sectors such as for the aircraft parts and repair industry in the country which can eventually open up employment opportunities.

Irine also appreciated the Ministry of Transportation's proposal regarding the elimination of the Avtur Value Added Tax (VAT) and plane ticket VAT where the charge of VAT in the aviation sector only occurred in Indonesia.

According to Irine, the elimination of plane ticket taxes can maintain the affordability of flight service prices for the community, especially in the midst of challenging economic conditions.

"This is important to ensure air transportation accessibility for all levels of society," said the North Maluku electoral district legislator.

Irine assessed that the increase in connectivity would be in line with the vision of infrastructure development that has been carried out by the Government. Including the improvement in airport development.

"It's like a word, what does it mean that there are many new and good airports but the passengers are not optimal? With cheaper plane ticket prices, I think the number of airplane passengers will increase as well," he concluded.