PPnBM and Property VAT discounts will take effect immediately, the rules have been signed by Sri Mulyani

JAKARTA, KOMPAS.com – Minister of Finance Sri Mulyani Indrawati revealed that the derivative rules for the discount on Sales Tax on Luxury Goods (PPnBM) and discount on tax on home purchases (PPN DTP) have been signed.

The state treasurer said the rules would come out after they were promulgated. Currently, the invitation process is in progress. The incentives will be regulated in two Minister of Finance Regulations (PMK).

“I have initialed both the PMK for the automotive and housing sectors. Now it is in the process of being invited. That means getting a number from the Ministry of Law and Human Rights,” Sri Mulyani said at the KSSK press conference, Wednesday (2/2/2022).

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The woman who is closely called Ani admitted that the rule could have come out today if the invitation process went smoothly. He made sure the issuance of the rules would not take long.

“If it’s finished today, yes, it will be announced today as well. So it’s more about the issue of the invitation, it’s all finished,” said Ani.

For your information, PPnBM discount given to motorized vehicles with a price below Rp 200 million (LCGC). The PPnBM that should be imposed reaches 3 percent.

However, specifically for the first quarter of 2022, the government does not impose a tax (0 percent tax) or gives a 3 percent discount on PPnBM DTP.

The amount of this tax discount is then reduced little by little in each quarter. In the second quarter, the government only gave a discount of 2 percent so that buyers need to pay PPnBM of 2 percent.

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Then in the third quarter, the PPnBM discount was reduced again by only 1 percent. In other words, buyers need to pay PPnBM for the remaining 2 percent. Then, the discount stops in the fourth quarter of 2022.

Not only that, the government also provides PPnBM discounts for automotive with assets ranging from Rp 200 million – Rp 250 million. Usually for this type, the government imposes a 15 percent discount on PPnBM. This discount is only valid in the first quarter of 2022.

Then, the amount of the discount on VAT on property DTP, aka the discount on home purchases, gets a 50 percent discount for house prices of up to Rp. 2 billion.

Previously, the tax discount for the purchase of a house of up to Rp. 2 billion reached 100 percent, aka completely freed. A similar discount reduction also applies to house prices from the range of Rp 2 billion – Rp 5 billion, which only gets a 25 percent discount.

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