Indonesian Finance Minister Sri Mulyani Indrawati stated that technical regulations related to incentives for the Government-Borne Value Added Tax (PPN DTP/VAT DTP) are being prepared and will come into effect in November 2023.
“We have designed the DTP VAT incentive for housing, and it is hoped that it will be issued this November to maintain the momentum of economic growth,” Sri Mulyani stated at the Financial System Stability Committee (KSSK) press conference in Jakarta on Friday.
She expressed hope that the Minister of Finance Regulation (PMK) would receive a positive response in terms of supply and demand in the housing sector.
The state treasurer explained that the 100 percent VAT DTP incentive scheme will only be provided for house purchases priced under Rp2 billion.
Meanwhile, for houses with prices starting from Rp2 billion until Rp5 billion, buyers still have to pay VAT without any incentives.
“This VAT DTP facility is provided to buyers of one house per one NIK (National Identity Number) or one NPWP (Tax Identification Number). The program runs from November 2023 to December 2024, so 14 months,” Sri Mulyani remarked.—Antara
