President Jokowi Approved the 2022 Property VAT Discount with a Maximum of 50 Percent.

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The President of Indonesia, Joko Widodo, has finally approved the budget allocation for the 2022 Value Added Tax (hereinafter referred to as PPN) and Government-borne (DTP) funds.

In addition, the government will extend the allowance for payment of the government-borne value-added tax (PPN DTP) for homes until next June.

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).

Minister of the Economy, Airlangga Hartato

According to his explanation, the president approved several national economic recovery programs (PEN) with a budget of Rp. 451 trillion.

The amount of the budget is divided into three sectors, namely health, social protection, and physical facilities for several factors.

He said, β€œWhat the President has approved is the property fiscal initiative or PPN DTP. it will be extended until June 2022,”

The amount of the discount

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

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

This PPN DTP will be calculated from the beginning of the contract. Furthermore, the construction of the house is expected to be completed within 9 months.

However, Airlangga did not specify how much funds were allocated by the government for the PPN DTP incentives property sector this year. As it is known, the government provides PPN on DTP or PPN incentives to encourage people to buy their own houses.

The amount of PPN incentives for DTP given by the government in 2022 is indeed smaller than that obtained in 2021, where houses with a maximum price of Rp. 2 Billion get a 100 percent discount.

Meanwhile for houses with prices starting at Rp. 2 billion to Rp. 5 billion get a discount on PPN DTP up to 50 percent.