Property VAT Exemption: Proof That The State Is Present To Fulfill Affordable Residential Needs

JAKARTA - The Ministry of Finance (Kemenkeu) stated that the issuance of Minister of Finance Regulation (PMK) Number 60/PMK.010/2023 is a form of attention to the fulfillment of livable and affordable housing needs, especially for low-income people (MBR).

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said the regulation was aimed at increasing the availability of houses, increasing access to financing for MBR, maintaining affordable housing affordability, and maintaining program and fiscal sustainability.

"Through this PMK, each house gets facilities in the form of VAT exemption of 11 percent from the selling price of landed houses or between Rp. 16 million to Rp. 24 million for each housing unit," he said as reported by the official website today, Monday, June 19.

According to Febrio, in addition to increasing the fulfillment of needs, this VAT exemption facility will also have a positive impact on the national economy, including investment in the property industry and its supporting industries, job creation, and increasing public consumption.

"This VAT exemption facility is intended to support the provision of at least 230,000 housing units for low-income people targeted by the government," he said.

Febrio explained that this new PMK regulates the maximum selling price limit for landed houses granted VAT exemption to between Rp162 million to Rp234 million for 2023 and between Rp166 million to Rp240 million in the 2024 period for each zone.

He said that in the previous regulation, the maximum limit for landed houses that were exempted by VAT was between Rp. 150.5 million to Rp. 219 million. This increase in limits follows an increase in the average construction cost of 2.7 percent per year based on the Large Trade Price Index.

"Since its enactment from 2010, more than two million low-income people have received subsidized housing. This VAT exemption facility has become an instrument for the state to increase the number of subsidized houses so that more people can buy livable houses at affordable prices," he said.

Febrio added that the government also guarantees the feasibility of housing by setting a minimum area of housing and land buildings provided with facilities.

For this reason, there are five requirements so that the public can take advantage of the facilities for this public house.

First, the building area is between 21-36 square meters. Second, the land area is between 60-200 square meters. Third, the selling price does not exceed the price limit in PMK.

Empat, merupakan rumah pertama yang dimiliki oleh orang pribadi yang termasuk dalam kriteria MBR, digunakan sendiri sebagai tempat tinggal, dan tidak dirapatkan dalam jangka waktu empat tahun sejak dimiliki.

And the fifth is to have a home identity code provided through an application from the Ministry of PUPR or BP Tapera. "VAT exemption facilities are also provided for employees, the delivery of student and student dormitories to universities or schools, as well as companies to their own employees and are not commercial in nature," closed Febrio.