Property Sector VAT Exemption Complements The Previous 4 Incentives, Here Are The Details

Housing illustration. (Photo: By courtesy)

JAKARTA - Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono said that the property sector incentive policy in the form of tax discounts through Government Borne VAT (DTP) facilities complements the four policies that have been rolled out by his party.

"We ourselves have provided four pre-existing facilities, namely the Housing Financing Liquidity Facility (FLPP) of IDR 16.66 trillion for 157,500 units, Interest Difference Subsidy (SSB) of IDR 5.96 trillion, Advance Assistance Subsidy (SBUM) of IDR 630 billion for 157,500 units, and Savings-Based Housing Financing Assistance (BP2BT) of IDR 8.7 billion,” he said during a virtual press conference, Monday, March 1.

Basuki added, for Low-Income Communities (MBR), in addition to the four programs, VAT was also exempted and 4 million cash advances were added.

"So that overall, the program achievements for 2020 of 200,972 units with a value of VAT-free facilities provided by the Government of IDR 2.92 trillion for MBR," he said.

On this occasion, the Minister of PUPR also explained that the provision of PPN DTP facilities of 100 percent was given for the sale of landed houses or apartment residential units with a selling value of up to IDR 2 billion and VAT DTP of 50 percent for those with a selling value above IDR 2 billion to IDR 5 billion.

Furthermore, the criteria for landed houses and flats that receive this incentive must be physically submitted and ready for habitation. Then another requirement is that one person can only have 1 new residential unit and cannot be resold within a period of 1 year.

"This means that this facility is for houses that are already in stock," he said.

It is hoped that the provision of incentives can revive the excitement of the property sector, considering that this line together with the construction sector contributes to GDP by around 13.6 percent.