Umrah Pilgrimage Exempted from Value Added Tax
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27 July 2020 14:46 WIB
TEMPO.CO, Jakarta - The Religious Affairs Ministry lauded the passing of the Finance Ministry’s Regulation No.92/PMK.03/2020, which exempted Indonesian nationals from the one percent value added tax (PPN) in conducting the umrah pilgrimage.
“Alhamdullilah, we truly appreciate the issuance of the Finance Ministry’s Regulation. Umrah is now exempted from the one percent PPN besides visits to Mecca and Madina,” said Nizar, the Religious Affairs Ministry’s Director-General of hajj and umrah on Monday.
According to Nizar, the Religious Affairs Ministry had actively pursued the tax exemption on July 18, 2019 after it sent an official request to the Directorate General of taxations regarding the umrah pilgrimage, which was categorized as a religious pilgrimage as opposed to a general tour.
There were changes made to Article 4A (3) of Law (UU) No.42/2009 that oversees the value added tax for services and goods sales and regulates aspects in the business that can be exempted from the PPN tax, which includes services in the field of religious affairs.
Services in religious activities exempted from the value added tax include houses of worship services, services in public sermons, and other religious services.
Read: Garuda Indonesia: Umrah, Hajj Trips Can Be Rescheduled
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