Buy A VAT-Free House, KPUPR: Make It Easy For People To Have Commercial Housing

Home illustration (photo: dock. Antara)

JAKARTA - The Ministry of Public Works and Public Housing (PUPR) assesses that the Government-borne Value Added Tax (PPN DTP) will make it easier for people to have the desired housing.

The government plans to cover VAT for house prices of up to IDR 2 billion, which is valid from November 2023 to December 2024. The government also provides incentives for MBR in the form of housing administration management costs assistance ranging from Land and Building Rights Obtainment Fees (BPHTB) and others reaching IDR 4 million.

"In terms of PPNDTP, right, for commercial houses, that's good. This means that it can indeed move (the community to own housing). Until June 2024 it is tax-free 100 percent, the rest will be tax-free until December 2024 by 50 percent," said Director General of Infrastructure Financing of the Ministry of PUPR Herry Trisaputra Zuna after being met at the 2023 Indonesia Construction event at JIExpo Kemayoran, Jakarta, Wednesday, November 1.

Herry assessed that this is a good momentum that can be used by people to have commercial housing without being burdened with tax levies.

"In my opinion, this really helps developers (developers) to spend their stock and also help people who don't have a home," he said.

According to him, the tax-free expansion planned by the government will have a positive impact in the housing sector, especially on domestic economic growth.

"In my opinion, the impact will be on economic growth so that it can help. Yes, all parties are lucky with this policy, especially the community," said Herry.

Furthermore, said Herry, his party will conduct further socialization related to the existence of the government program.

"Yes (it will be socialized), of course this (policy) has also been running. One more thing that assistance for administrative costs will also be very helpful because at the beginning when MBR bought a house, it was true that he had to provide quite a lot of money for the initial stage, so if he was assisted Rp. 4 million, he hoped that later the burden would be lower," he concluded.