The Elimination Of BPHTB And PBG Encourages The Acceleration Of 3 Million Houses, Indef Says This

Home (photo: dock. Antara)

JAKARTA - The government has decided to abolish the levy of Building Building Approval (PBG) and Building Rights Obtainment Customs (BPHTB) for Low-Income Communities (MBR).

According to the plan, the abolition of the tax will be in the form of a Regional Head Regulation regarding the exemption of BPHTB and the Approval of Building Buildings (PBG).

So, can the policy encourage the acceleration of the achievement of the program of 3 million houses made by President Prabowo Subianto?

Responding to this, Director of the Institute for Development of Economics and Finance (Indef) Esther Sri Astuti said that the elimination of BPHTB and PBG levies did not significantly encourage the achievement of the 3 million house program.

Esther assessed that the government should increase the Value Added Tax (VAT) incentives and subsidies at the Home Ownership Credit (KPR) interest rate.

"The VAT incentives and subsidies for the mortgage interest rate should be added, then they can push the 3 million house program," Esther told VOI, Tuesday, November 26.

According to Esther, the power of society is currently weakening. Thus, the most important thing that can be done at this time is to strengthen people's purchasing power.

"If people's purchasing power weakens due to sluggish economy and tax rates increase and high interest rates, the policy of removing BPHTB will not significantly encourage the program of 3 million houses," he said.

"In my opinion, the most important thing is to strengthen people's purchasing power," he continued.

Furthermore, Esther considered, that the policy of eliminating BPHTB and PBG levies alone was not enough to encourage the acceleration of the achievement of the 3 million house program.

Because, he said, this is not proportional to the mortgage installment burden borne by the community. "That's, right, it's not much with the mortgage installment burden borne by consumers," he concluded.