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City to freeze tax on low-cost property until 2018
(Tribunnews
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(Tribunnews.com/Adi Suhendi) (Tribunnews.com/Adi Suhendi)
(Tribunnews.com/Adi Suhendi)
In response to complaints over high land and building taxes (PBB) from residents, Governor Basuki 'Ahok' Tjahaja Purnama has said that the Jakarta city administration will not increase the PBB on low-cost property ' including houses and apartments ' until 2018.
'For any houses built on land priced at less than Rp 1 billion (US$70,000) based on taxable values of property (NJOP), including low-cost apartments, the land and buildings taxes will not increase until 2018,' Ahok said as quoted by beritajakarta.com.
A recent significant increase in the PBB rates is due to the city administration's 2014 decision to raise the taxable value of property (NJOP) by 120 to 240 percent. Some residents say this would force them to sell their properties because they could not afford to pay the increased taxes.
The NJOP increase was introduced after authority over the PBB was transferred to the city administration by the central government in November 2012, allowing the city to collect land and building taxes for its sole use, instead of sharing them with the central government as it had done in the past.
With the NJOP increase, the city's potential income from the PBB could surge by 82.2 percent to Rp 6.7 trillion, up from Rp 3.68 trillion last year, according to an official.
After residents' complaints, the city administration has opened up a channel for low-income families and civil servants to propose changes.
Governor Ahok also called on residents to revise any inaccurate documenting of their properties, assuring that they would not face penalties. (bbn)(++++)
