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View all search resultsAhok wants to scrap property taxes
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Jakarta Governor Basuki "Ahok" Tjajaha Purnama speaks to journalists at City Hall on April 1. The governor brought up the idea of scrapping property taxes for homes priced below Rp. 2 billion on Wednesday. (Kompas.com/Kurnia Sari Aziza)
A
fter scrapping land and building taxes (PBB) for homes priced below Rp 1 billion (US$73,327), Jakarta Governor Basuki “Ahok” Tjahaja Purnama raised on Wednesday the idea of scrapping property taxes for homes priced below Rp 2 billion.
He argued that such taxes were inherited from the Dutch colonial administration.
“So, why should we follow the Dutch system? Homes of Indonesian citizens should not be taxed. We should draw taxes from foreigners, not from our own people,” said Ahok on Wednesday at Jakarta City Hall as reported by kompas.com.
He was speaking in front of heads of working units under the Jakarta administration at a signing ceremony.
He said scrapping property taxes was possible in Jakarta, but should be implemented in stages.
“Today, we can only scarp property taxes for houses priced below Rp 1 billion because we fear not being able to develop infrastructure,” he added.
For the next step, he added, his administration would free owners of houses priced below Rp 2 billion from having to pay taxes.
“We are studying the possibility of scrapping taxes for houses below Rp 2 billion,” he said at an event in Jatinegara, East Jakarta.
The policy is to help people ease their burdens amid economic difficulty, he said.
“We don’t want people who live in kampungs to be burdened with taxes due to the increasing prices of their properties, while their salary remains stagnant,” he added. (bbn)
