JAKARTA (Yosefardi) – The Finance Ministry has set a new regulation on value-added tax for small houses, made alongwith the inputs and reviews from Ministries of Public Housing and Public Works.
This new regulation, effective since June 10, 2014, will be implemented for 5 years ahead, compared to one year of implementation set by previous regulation, subjected to the economic projection until 2018, including the expected increase of housing prices.
The small houses not required to pay value-added tax are priced at;
1) Rp105 million for Java and Sumatra area (excluding Jakarta, Bogor, Depok, Tangerang, Bekasi, Bangka, Belitung)
2) Rp118 million for Kalimantan area
3) Rp110 million for Sulawesi area, Riau island, Bangka, Belitung
4) Rp120 million for Jakarta, Bogor, Depok, Tangerang, Bekasi, Maluku, North Maluku, Bali, Nusa Tenggara)
5) Rp165 million for Papua and West Papua
Anton Santoso, chairman of association for developers of housing (Apersi) welcomes the new regulation and said Apersi members will release 15,000 units of small houses at new prices.
The government targets to provide subsidy for 57,000 units of small houses under the housing funding liquidity facility program (FLPP).