Indonesia | Revival of Incoming Tourism by Eliminating Taxes on Air Tickets

 

The Republic of Indonesia, Southeast Asian country located between the Indian and the Pacific Oceans made up of more than 17.000 islands is taking measures to increase the flow of tourists for its incoming.

Indonesia's Minister of Tourism and Creative Economy, Sandiaga Uno has expressed his support for the Ministry of Transport's proposal to eliminate taxes on airline tickets, a strategic move to reduce high ticket prices and increase potential tourism revenues.

Minister Sandiaga commented that one of the main factors contributing to the high cost of air travel is the tax applied to tickets and he emphasized thar increasing domestic tourist activity could have a very significant positive impact on the local economy, potentially including exceeding the economic contributions of international tourists.

The Minister also pointed out that any potential loss of state revenue from the elimination of the ticket tax could be offset by an increase in spending by domestic tourists in the country's various tourist destinations.

Prior to all that, BKT, the Agency for Transport Policy, proposed the elimination of the air tickets with the aim of creating fair treatment with other modes of transport that are already exempt from these taxes according to a regulation of the Ministry of Finance.

In addition to the elimination of taxes, the Ministry of Transport has recommended several short-term policies, including the offer of tax incentives for aviation fuel, spare parts for aircraft and subsidies for airport service charges.

It is expected that with these applications, air tickets will be more affordable, thus increasing domestic tourism and consequently supporting the growth of Indonesia's tourism and creative economy sectors.

link https://www.expreso.info/noticias/internacional/101981_para_impulsar_el_turismo_indonesia_eliminara_impuestos_billetes_de

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