YLKI Deems Drop in Airlines Tariff Is a Marketing Gimmick
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2 July 2019 15:30 WIB
TEMPO.CO, Jakarta - The Indonesian Consumers Foundation (YLKI) chairman Tulus Abadi considered the decrease in airlines tariff that would be valid starting this week was only a marketing gimmick. “Because, the drop is not in peak hours or days,” said Tulus when contacted on Tuesday, July 2.
According to Tulus, airliners would eventually offer lower tariffs than the usual without being told so. “Instead, the government should have cut value-added tax (VAT) and VAT on avtur (jet fuel). That will be fair,” he added.
Tulus urged the government to decrease the VAT and VAT on avtur as it would significantly lower airfares. This strategy, he added, was based on his observation to other countries that did not impose VAT.
“So the government should split the weights with airliners. Don’t only push airliners and not willing to share the weights to lower tariffs,” Tulus underlined.
Previously, the Coordinating Minister of Economic Affairs secretary Susiwijono said that all domestic low-cost carriers (LCC) would offer a 50 percent discount from the upper cap of airlines tariff. The half price would be valid every Tuesday, Thursday, and Saturday for flight departures between 10:00 to 14:00 at each local airport.
MUHAMMAD HENDARTYO
