PANI Reveals Minimum VAT Incentive Impact On Performance

Rupiah (Photo: Antara)

JAKARTA - The government has decided to extend the provision of government-borne value added tax incentives (PPN DTP) by 100 percent until the end of December 2024. Meanwhile, PT Pantai Indah Kapuk Dua Tbk (PANI) revealed that it will still wait regarding the Minister of Finance Regulation (PMK).

Pantai Indah Kapuk Dua's Corporate Secretary, Christy Grassela, said that his party would still wait for more complete implementing instructions for implementing the VAT DTP policy of 100 percent.

"Currently we are still waiting for the Implementing Guidelines (juklak) from PMK, so in the form of PMK which will be issued by the Director General of Taxes and the Ministry of Finance for the decision," he said in a public expose live on Wednesday, August 28.

However, according to Christy, the policy is not a financial policy from the government to neutralize the market by providing subsidies or VAT DTP to property because this has been going on for almost 3 years.

As for the business side, Christy said PANI concentrated on the Central Business District (CBD) in the PIK 2 area in the sale of land banks or land banks, and sales of shop houses, soup, and housing from a price of Rp. 1 billion to more than Rp. 10 billion.

"From the products that I mentioned earlier, we sell all of them through pre-sales mechanisms, so our buyers they can choose, can determine which units they will buy from us. By the time the unit has been selected, it does not exist physically, maybe the land bank has been prepared., the land has been matured, the infrastructure for Boulevard roads to the area already exists," he explained.

Christy said that because the business concept is pre-sale or pivot-house, it takes no later than 2 new years on the handover, no later than the payment option can be 3.4 or 5 years.

"With this pre-sale mechanism at this time, we have very few inventions, so this VAT DTP is facilitated for developers who have built but have not been sold," he said.

Therefore, Christy said that with this VAT DTP policy, the impact may not be significant for the company's performance, but it has a significant impact on other developers who facilitate this.

"Maybe if we look at the houses that will be used for VAT DTP, these are like millennial houses, Ilona Pasadena, the range of products is Rp. 1 billion to Rp. 2 billion," he explained.

Previously, the Government decided to extend the provision of value added tax incentives (VAT) borne by the Government (DTP) by 100 percent for the housing sector until December 2024.

Coordinating Minister for Economic Affairs Airlangga Hartarto said President Joko Widodo (Jokowi) gave permission to extend the provision of value added tax incentives (VAT) borne by the Government (DTP) by 100 percent for the housing sector until December 2024.

"With the approval of the President (Jokowi) in the last meeting, the government has issued a DTP VAT tax incentive policy for the housing sector, where the VAT DTP incentive will be given 100 percent of this until December 2024," Airlangga said at a press conference in Jakarta Tuesday, August 27.

Airlangga explained that the technical regulations governing this would be contained in the Minister of Finance Regulation (PMK) and that the Minister of Finance Sri Mulyani Indrawati was currently preparing.

"Where the PMK will be prepared by the Minister of Finance," he explained.