Anies Who Is Willing To Lose Rp2.7 Trillion Of Potential DKI Provincial Government Cash Due To Tax Exemption Of 1.2 Million Houses In Jakarta

DKI Jakarta Governor Anies Baswedan in the "Jakarta Tax, Fair and Equitable for All" activity, coinciding with the 77th Indonesian Independence Day, Wednesday 17 August. (Doc for Public Relations of DKI Provincial Government)

JAKARTA - DKI Jakarta Governor Anies Baswedan issued a new policy regarding the exemption of land and building tax (PBB) for residents who own buildings with a certain value in Jakarta.

This policy was revealed by Anies in the "Jakarta Tax, Fair and Equitable for All" activity, which coincided with the 77th Indonesian Independence Day, Wednesday, August 17, yesterday.

This policy has also been stated in the Governor's Regulation Number 23 of 2022 concerning the Policy for Determining and Payment of Rural and Urban Land and Building Taxes as an Effort for Economic Recovery in 2022.

Anies said that currently 1.2 million residential buildings with a value of under Rp. 2 billion will be exempted from the PBB payment. Then, 200 thousand buildings whose value is above Rp. 2 billion are given a payment deduction factor.

"With this policy, 85 percent of residents and buildings in Jakarta are not subject to the PBB. In this place whose value is above 2 billion, they are still subject to the PBB. However, there are exceptions," said Anies, Wednesday, August 17.

From the release of PBB for 1.2 million houses, regional treasury income from PBB payments could be lost by IDR 2.7 trillion per year. However, Anies has no problem. He is willing that the DKI Provincial Government will lose Rp2.7 trillion in revenue from this PBB liberation because it stays in the pockets of the people whose PBB has been liberated.

Because, according to Anies, the money that should have been spent by the community for the payment of the PBB can be used to meet their daily needs.

"IDR 2.7 trillion is the amount normally accepted by the government, but with this policy, the funds will remain in the community. It is hoped that this IDR 2.7 trillion will be used to move the economy. So that more people can work, more people can get better welfare, "explained Anies.

Then, Anies has another way to replace the potential loss of IDR 2.7 trillion in regional income, namely by updating data (census) of land that has now become a building and optimizing tax collection from business actors.

"The government seeks taxes from business activities that are added value. I convey to Bapenda (Regional Revenue Agency), it must review again, whether the existing tax data is accurate, whether there are changes in the facts on the ground that do not match with data," he said.

"We in the government get compensation from business activities that generate profits. Some of the profits go to those who do business, part of the profits are paid to the government as taxes," Anies continued.

For information, the policies regarding PBB payments in the Governor's Regulation Number 23 of 2022 are:

A. Policy for issuing SPPT PBB 2022

1) Objects of residential houses owned by private persons: • NJOP up to Rp 2 billion: given a deduction factor (based on the need for a minimum area of land and buildings for a simple healthy house, which is 60 m2 for the earth and 36 m2 for building).

2) In addition to residential houses and toll roads, 15 percent are exempted

B. Tax reduction policy and elimination of PBB administrative sanctions 20221) Fiscal Year 2022:• Given a discount of 15 percent if paying June - August 2022• Given a discount of 10 percent if paying September - October 2022• Given a discount of 5 percent if paying Nov 2022• Sanctions removed 100 percent for payment 1 month after maturity

2) Fiscal Year 2013-2021:• Given a discount of 10 percent if paying June - October 2022• Given a discount of 5 percent if paying November - December 2022• Sanction is removed 100 percent