The Government Gives VAT Incentives For Purchasing Houses Of Up To IDR 5 Billion, Checks The Terms

Illustration (Photo: Doc. Antara)

Minister of Finance Sri Mulyani Indrawati said the government had prepared incentives for the housing sector to stimulate public demand for the property sector by providing incentives in the form of Value Added Tax (VAT) which would be borne by the government.

Sri Mulyani said the incentives provided by the government for the property sector were intended for the purchase of new houses that had been built or the stock was available.

"This is the goal of absorbing the houses that have been built and the existing stock, thus bringing up demand," said Sri Mulyani at a press conference, Monday, November 6.

The incentives provided are in the form of VAT which will be borne by the government to purchase houses from the previous Rp2 billion to Rp5 billion.

Sri Mulyani added that 100 percent of the VAT borne by the government only applies to the purchase of houses under Rp. 2 billion. As for the purchase of houses of Rp. 5 billion, the government only bears around Rp. 2 billion.

"The Rp5 billion that was borne was Rp2 billion. So from what we previously announced, namely incentives for housing under Rp2 billion, VAT borne by the government, but for Rp5 billion, only Rp2 billion is borne by the government," said Sri Mulyani.

This program is divided into two phases, namely the first phase will be borne by the government by 100 percent for VAT for the period November 2023 to June 2024. Furthermore, the second phase from July 2024 to December 2024 will be given a VAT subsidy of 50 percent.

The conditions applied for the provision of incentives are in the form of 1 NIK or 1 NPWP, without any new conditions and using existing mechanisms so that the execution can be maximized this year.

Then, the second incentive that the government will provide is assistance to low-income people (MBR).

This incentive has been provided through the Housing Financing Liquidity Facility (FLPP).

Where, the government will bear an administrative cost of Rp. 4 million per house for MBR who buys a simple house.

"This house usually costs around Rp160 million cut off," said Sri Mulyani.

Sri Mulyani said that the government had increased the price limit for MBR houses to Rp350 million per house.

Thus, MBR can buy a house up to a price of IDR 350 million and get administrative assistance.

"In addition, of course, we also have a mortgage through FLPP which also provides interest subsidies. So this is an addition of incentives that have been given to low-income people," he said.