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Greater Jakarta: Tax exemption for houses of less than Rp 1b
JAKARTA: Owners of houses in Jakarta with taxable property values (NJOP) of less than Rp 1 billion (US$73,553) will no longer need to pay land and building taxes (PBB), an official has said
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AKARTA: Owners of houses in Jakarta with taxable property values (NJOP) of less than Rp 1 billion (US$73,553) will no longer need to pay land and building taxes (PBB), an official has said.
Tax Agency deputy head Edi Sumantri said that the policy had become effective starting last month after Governor Basuki 'Ahok' Tjahaja Purnama issued Gubernatorial Regulation No. 259/2015 on taxation at the end of December.
The tax exemption relates only to houses and not to shop houses, apartments or retail premises.
Edi said that with the new regulation, as many as 1.1 million taxpayers would thus be exempted from land and building taxes.
'The tax exemption is aimed at minimizing the burden on low-income residents, especially amid the economic slowdown [...] However, shop houses and apartments with NJOP of less than Rp 1 billion are not exempted. Only low-cost houses are exempted,' Edi said after a meeting at the city council building in Central Jakarta late on Thursday.
Edi said that with the new regulation, the city administration might lose up to Rp 450 billion in land and building tax income, but he gave an assurance that the tax agency would maximize income from other sources, such as from restaurant and hotel taxes.
