Ministry Of Finance Extends VAT Incentive For DTP Purchase Of Houses Until December 2024

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu. (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) officially issued Minister of Finance Regulation (PMK) Number 61 of 2024 concerning the extension of the Government-Borrowed Value Added Tax (PPN DTP) incentive for the purchase of houses until December 2024.

"In the context of accelerating growth in the property sector in the last four months of 2024, through PMK 61 of 2024, an additional 100 percent VAT DTP facility will be provided from September 1, 2024 to December 31, 2024," said Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu in Jakarta, quoted from Antara, Thursday, September 19.

In the previous regulation, the Government provided PPN DTP facilities of 100 percent until June 2024 and 50 percent until December 2024.

Meanwhile, through PMK 61/2024, the VAT incentive for DTP is 100 percent extended until December.

The incentive stipulation is still the same as stipulated in the previous PMK. The government bears VAT for the purchase of landed houses at a maximum price of IDR 5 billion. Meanwhile, the amount of VAT borne is for the basis of tax imposition (DPP) up to IDR 2 billion.

"This policy is expected to be able to provide a significant multiplier effect to accelerate economic growth and strengthen national economic resilience amid worsening global dynamics," said Febrio.

In addition to VAT incentives for DTP, the Government has also increased the allocation of subsidized Home Ownership Loans (KPR) for low-income people (MBR) by 34,000 units. The incentive is provided through the Housing Financing Liquidity Facility (FLPP) program.

With the addition of this allocation, MBR, which can utilize subsidized mortgages this year, has increased from 166,000 families to 200,000 families.

The government also provides various incentives for MBR including VAT, Face Money Assistance Subsidy (SBUM), Administration Fee Assistance (BBA), Self-Help Housing Stimulant Assistance (BSPS), and Integrated Simple Houses (RST) assistance.

"This policy mix certainly means a lot to help low-income people who have limited financial capacity and indirectly encourage national economic growth," said Febrio.