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In bid to raise home sales, Indonesia cuts a property tax

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Indonesia is set to cut in half a tax on home sales from September, according to a presidential regulation, a move that should help the country’s property sector.

The sellers of homes will be subject to a final tax of 2.5 per cent of the transaction price, instead of the current 5 per cent, based to the regulation signed by President Joko Widodo on Aug 8.

For purchases of homes smaller than 36 square metres, the rate will be only 1 per cent. The regulation said this is “to give protection for citizens with low income”.

Head of Indonesia’s tax office, Ken Dwijugiasteadi, told Reuters on Friday the measure is “to support the property sector and to help aid purchasing power because one of the people’s primary need is to own a house”.

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Paul

The author Paul