REI urges the government to lower property taxes

JAKARTA, KOMPAS.com – Property is one of the sectors most affected by the Covid-19 Pandemic, following the slowdown that occurred in the last three years due to the global economic crisis.

Therefore, it takes various efforts and stimuli to generate property sector in order to recover and become the locomotive of the National economy.

As is known, the property sector drives 174 participating industries and the potential for absorption of 30.34 million workers.

General Chairman DPP REI Paulus Totok Lusida said, with this fact, the role of the property sector is very strategic.

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However, in the midst of the Covid-19 Pandemic, the property sector could not move actively, especially the sub-sectors offices which experienced a drastic decrease of 74.6 percent.

In addition, commercial homes also fell 50-80 percent, and shopping center about 85 percent, and hotel fell sharply 90 percent.

“Only the subsidized housing segment that survived during the Covid19 pandemic. Consumers are still enthusiastic (especially in the regions), “said Totok during a virtual discussion” 75 Years of Independent Indonesia, Property Driving the National Economy “, Thursday (17/9/2020).

Therefore, REI urged the government to provide incentives in the form of lowering property taxes in order to revive the property sector.

The incentive is in the form of a reduction in the Final Income Tax for Land and Building Leases by 10 percent to 5 percent during the pandemic period or for a period of between 12-18 months.

Then, reduce the Final Income Tax for the Sale and Purchase of Land and Buildings by 2.5 percent to 1 percent during the pandemic period or for a period of between 12-8 months.

Next, reduce the VAT rate by 10 percent to 5 percent during a pandemic or for a period of between 12 – 18 months.

And it is necessary to be given leeway for the payment of Final Income Tax for Rent and Sale of Land and Buildings, as well as VAT during the pandemic period or up to 9-12 months from the maximum tax payment limit.

In addition, the purchase of property, whether individual or business entity whose source of funds has not been recorded in the SPT is subject to a tax of 5 percent.

“This can then be included in the SPT for tax reporting the following year,” added Totok.

REI also asked the Government to provide other incentives in the form of an increase in the budget in the APBN for the sector housing.

This is because the absorption of the budget in the residential industry is able to generate many times the economic value.

Property observer Ali Tranghanda agrees with REi’s proposal, because at this time, action is urgently needed to save the developer company from cash flow difficulties.

“There needs to be incentives from the government, including taxes on property purchases, especially for investors because they are relatively ready for purchasing power. Apart from that, it is necessary to relax property purchases for consumers, “said Ali.

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