Indonesia Exempt Hajj, Umrah Travel Services from Value-Added Tax – Minister
Indonesia coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that hajj and umrah travel services are not subject to value-added tax or VAT.
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He made the statement in response to the #Hajj and #Umrah Travel Association’s (SATHU) inputs on various issues in the hajj and umrah travel service industry.
Airlangga said there is already a Finance Ministerial Regulation (PMK) No. 92/PMK.03/2020 concerning criteria and/or details of religious services be exempt from VAT.
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“In the PMK, it is clear that religious service providers, including hajj and umrah travel services, are not subject to VAT which has been effective since August 22, 2020,” he said in a written statement, Wednesday, November 17.
Airlangga added that the government is now focusing is to providing ease of doing business and strengthening the economy during the pandemic, including the business of organizing hajj and umrah.
However, he emphasized that the concept of imposing sanctions as a consequence of risk-based business licensing is intended to encourage business actors to be more responsible in running their business and maintaining business continuity.
“So this will be disseminated further. No need to worry. The Job Creation Law is actually in favor of the community and entrepreneurs to improve the business and investment climate,” Airlangga Hartarto remarked.
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