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Govt to offer new tax breaks on property, cars
50 percent discount VAT for sales of homes valued under Rp 2 billion (US$140,000) and a 25 percent discount on VAT for homes valued between Rp 2 billion and Rp 5 billion until June.
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ndonesia will introduce new tax breaks on property and automotive sales this year in a bid to accelerate its economic recovery from the COVID-19 pandemic as authorities prepare for the spread of the Omicron variant, top officials said on Sunday.
New coronavirus infections in the country rose to 1,054 on Saturday, the highest in three months, amid reports of local transmission of the more contagious Omicron variant. The government reported 855 new infections on Sunday, taking the cumulative national case tally to 4.27 million.
The government will provide a 50 percent discount on value added tax (VAT) for sales of homes valued under Rp 2 billion (US$140,000) and a 25 percent discount on VAT for homes valued between Rp 2 billion and Rp 5 billion until June, Coordinating Economic Minister Airlangga Hartarto said in a virtual briefing.
Airlangga said several schemes of tax cuts would also be given for sales of cars worth under Rp 250 million, some of which would expire at the end of March, while others at the end of September.
The government had provided tax breaks for property and car sales last year under different schemes, which expired in December.
Health Minister Budi Gunadi Sadikin told the same briefing that the government was preparing the capital Jakarta as its "first battleground against Omicron".
"The government has prepared drugs; 400,000 tablets have arrived and the plan is for production in Indonesia by March or April," Budi said, referring to the arrival and production plan of the antiviral pill molnupiravir, which was jointly developed by United States-based Merck & Co Inc and Ridgeback Biotherapeutics.
"We are also in the process of bringing in Paxlovid by Pfizer, hopefully by February so that once we see a jump [in cases], the drugs are ready," he said.
Authorities have said tighter mobility restrictions will be the last choice among policy options to contain an Omicron outbreak.
