50 Percent Home VAT Discount Extended until June 2022

Jakarta, CNN Indonesia

The government gives tax discount value addition (PPN) of 50 percent for new home purchases from January-June 2022. This discount is an extension of the government-borne VAT fiscal incentive which should expire in December 2021.

“The government borne the government’s VAT fiscal incentive for housing, this was approved by the President (Joko Widodo),” said Coordinating Minister for the Economy Airlangga Hartarto at the Reflection on 2021 Achievements and 2022 Economic Outlook, Thursday (30/12).

However, there are differences from the extension of this VAT incentive. Initially, the government provided free VAT or a 100 percent discount for the purchase of a new house with a maximum price of IDR 2 billion.

However, the VAT discount will only be 50 percent next year. Meanwhile, the VAT discount for the purchase of a new house for more than Rp. 2 billion to Rp. 5 billion, which was originally 50 percent to 25 percent.

“That (incentive) can be given to those who contract up front (indent), so there is time to build,” he explained.

However, he has not mentioned the budget ceiling for the provision of these fiscal incentives in the future. Meanwhile, this year, the realization of incentives for home VAT discounts reached Rp960 billion.

Later, the government will issue a technical regulation regarding the provision of home VAT discounts. Previously, the provisions were contained in the Minister of Finance Regulation (PMK) Number 103/PMK.010/21 concerning VAT on the Delivery of Tapal Houses and Residential Units of Government-Borrowed Flats for Fiscal Year 2021.

[Gambas:Video CNN]

(uli / sfr)


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