Good News For Property Entrepreneurs! Sri Mulyani Ensures Extended VAT Incentives To Be Released Next Week

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the government remains committed to continuing to provide incentives for Government Borne Value Added Tax (PPN DTP) of up to 100 percent until December 2021.

According to the Minister of Finance, this step is expected to be a stimulus to move the economy and encourage productive activities in the housing industry and its derivatives. In fact, the incentives that property entrepreneurs have been waiting for will come out in the near future.

“Currently the PMK (Minister of Finance Regulation) is in the process of being issued, so we are making efforts to harmonize it and it is only one step away. It won't take too long, we hope it will come out next week," he said at the KSSK press conference which was broadcast virtually on Friday, August 6.

The Minister of Finance added that this policy, which is currently being discussed, also replaces the previous policy that is valid until the end of the month.

"The current PMK, namely PKM Number 21 of 2021, provides facilities until August. Later, as soon as the new PMK comes out, it will cover until December 2021," he said.

In his statement, the Minister of Finance also ensured that the government would apply the same incentive scheme by dividing policies into two broad categories.

"This advanced rule will still provide 100 percent VAT DTP facilities for homes with a maximum selling price of IDR 2 billion. Meanwhile, for houses whose prices are above Rp. 2 billion to Rp. 5 billion, the government will bear VAT at a rate of 50 percent," he said.

For information, the stimulus contained in the Minister of Finance Regulation (PMK) No. 21/PMK/010/2021 which took effect on March 1 was like a breath of fresh air in the midst of the sluggish property market during the current pandemic.

To note, housing incentives are one of the government policies included in the National Economic Recovery (PEN) budget for the business incentive sub-sector with a total value of Rp62.83 trillion. Meanwhile, the PEN funds in the 2021 APBN amounted to Rp. 744.75 trillion.