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YOGYAKARTA People who plan to buy subsidized houses should be happy. The reason is, the Government has raised the price limit for value-added subsidies (VAT). Then what is the price limit for subsidized houses to be free of new VAT?

Previously, the Government had indeed exempted VAT on subsidized houses with a maximum house price limit of between Rp. 150.5 million to Rp. 219 million. Currently, the price of the house between Rp. 162 million to Rp. 234 million is exempt from VAT in 2023. This is as stated in the Minister of Finance Regulation (PMK) Number 60 of 2023 which was signed by the Minister of Finance Sri Mulyani on June 9, 2023.

Meanwhile, for the following year, subsidized houses with a price of Rp. 166 million to Rp. 240 million will also be freed from the burden of VAT.

Regarding the release of VAT on subsidized houses, the Head of the Fiscal Policy Agency of the Ministry of Finance (Kemenkeu) Febrio Kacaribu explained that the increase in the limit was carried out by following the increase in the average required construction costs of 2.7 percent each year based on the Large Trade Price Index.

In addition, the Government also regulates the minimum area of houses that are eligible for VAT exemption facilities, namely 21 square meters, and 60 square meters of land. These facilities are also provided for boro cottages for labor cooperatives, employee cooperatives, the central government, and local governments.

A value added tax exemption is also given by the Government for the delivery of student dormitories as well as students to schools or universities, local governments and or the central government. The release of added value also applies to the delivery of workers' homes from companies to their own non-commercial employees.

As is known, subsidized houses are programs and facilities provided by the Government for people who need affordable housing. Subsidized houses are obtained through the KPR scheme, either through conventional schemes or sharia schemes. Subsidized houses themselves can be a solution for people who have low income or MBR.

For people who want to apply for a subsidy house, there are a number of subsidized housing requirements that must be met, namely as follows.

There are various advantages that can be obtained by people who apply for the purchase of subsidized houses, namely as follows.

That's information about the price limit for VAT-free subsidies. Visit VOI.ID to get other interesting information.


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