Jakarta, IO – The government will grant value added tax (VAT) exemption for home purchase worth under Rp2 billion until June 2024.
The decision was made by President Joko “Jokowi” Widodo after holding an internal cabinet meeting at the Merdeka Palace, Jakarta, Tuesday (24/10), per Katadata, Thursday (26/10).
Coordinating Economic Minister Airlangga Hartarto said the policy will take effect immediately. Then starting July 2024, Jokowi will continue to provide incentives in the form of 50 percent VAT discount for new home purchases.
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According to Airlangga, this measure was enacted to spur property sales. He said this sector contributes between 14 to 16 percent of national GDP.
In addition, the government will also provide Rp4 million discount for property transfer fee (BPHTB) for buyers categorized as belonging to the low-income group. (un)