President Jokowi Decides Property VAT Discount for 2022 Maximum 50 Percent

JAKARTA, KOMPAS.com – President Joko Widodo (Jokowi) has finally approved the budget allocation for the 2022 Government-borne Value Added Tax (VAT) funds.

This was conveyed by the Minister of the Economy Airlangga Hartato in a Minister’s Press Statement regarding the Results of the Limited Meeting of KDP Evaluation, Sunday (16/1/2022).

Airlangga explained that the President approved several programs related to national economic recovery (PEN) with a budget of Rp 451 trillion.

The budget is divided into three sectors, namely health, social protection and fiscal facilities for several sectors.

Also read: Even though VAT is discounted, apartment sales continue to drop, this is the culprit

“What the President has approved is the property fiscal initiative or VAT DTP will be extended until June 2022,” he said.

DTP VAT for flats and landed houses with a maximum value of IDR 2 billion, will be given a 50% DTP VAT facility.

Then for residential prices sold from Rp. 2 billion to Rp. 5 billion, you will get a VAT facility of 25 percent.

“This DTP VAT will be calculated from the start of the contract and it is hoped that the construction of the house can be completed within 9 months,” Airlangga added.

However, Airlangga on the occasion did not specify how much funds were allocated by the government for DTP VAT incentives property sector this year.

As is known, the government provides VAT on DTP or VAT incentives to encourage people to buy their own houses.

The amount of VAT incentives for DTP given by the government in 2022 is indeed smaller than that obtained in 2021, where for houses with a maximum price of 100 percent discount.

Meanwhile, houses with a price range of Rp 2 billion-Rp 5 billion get a VAT discount on DTP of up to 50 percent.

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