JABAR EKSPRES – The Ministry of Finance has set a new regulation regarding the price limit of subsidized houses free of Value Added Tax (VAT).
In the PMK 60/PMK.010/2023 regulation, the Ministry of Finance regulates the maximum selling price limit for landed houses that are granted VAT exemption to IDR162 million to IDR234 million for 2023.
Head of the Ministry of Finance’s Fiscal Policy Agency Febrio Kacaribu said in a statement here on Friday that for 2024, the price range is Rp166 million to Rp240 million for each zone.
“The renewal of the VAT exemption facility is an instrument for the government to increase the number of subsidized houses so that more people can buy livable houses at affordable prices,” Febrio Kacaribu said.
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In the previous regulation, the maximum limit on the price of landed houses exempted from VAT was between IDR150.5 million and IDR219 million.
The increase in this limit follows the average increase in construction costs of 2.7 percent per year based on the Wholesale Price Index.
The VAT exemption facility is intended to support the provision of at least 230,000 housing units for low-income people (MBR) targeted by the government.
In addition, VAT exemption facilities are also provided for boro huts for labor cooperatives, employee cooperatives, central government and local government.
The government also exempts VAT for the transfer of student dormitories and students to universities or schools, local and/or central governments.
Finally, VAT exemption is also applied to the transfer of workers’ houses by companies to their own employees and is not commercial in nature.
In addition, the government through the Ministry of Public Works and Public Housing (PUPR) also provides assistance in subsidizing the interest difference. The subsidy aims to enable MBR to continue to pay house installments with an interest rate of 5 percent.
