Calm down... VAT Rises, House Prices Not Sure
Writer: Emir Yanwardhana, CNBC Indonesia
Jakarta - The planned increase in Value Added Tax (VAT) to 11% from 10% as of April has not affected house prices. According to the Country Manager of Rumah.com, Marine Novita, this is because there is still an incentive for VAT borne by the government (VAT DTP) which is valid until September 2022.
"Even though the VAT has been added to 11 percent, we are still given a 50 percent discount. Now that doesn't apply until September 2022. Later it should be after September or so until September we don't pay 11 percent, so around 6 percent. Because we still have purchase incentives," he said. Marine in the Rumah.com webinar, Wednesday (23/3/2022).
The VAT incentive for DTP itself is given at 50% for house sales with a maximum of IDR 2 billion, and 25% for sales of houses with prices above IDR 2-5 billion. This is stated in the Regulation of the Minister of Finance (PMK) Number 6/PMrK.010/22 concerning Value Added Tax on the Delivery of Landed Houses and Flats Borne by the Government for Fiscal Year 2022.
The amount of incentives has also been reduced from 2021. Where the previous year's house and apartment tax discount was 100% for residential with a price of up to IDR 2 billion, and 50% for property at a price of IDR 2 - 5 billion.
In addition, Marine sees that the interest in landed houses is still the highest at the moment, apartments. According to survey figures, more than 70% of housing seekers are still looking for landed houses. Even though as of September after the DTP VAT incentive runs out, the developer will adjust the price.
"Developers will adjust prices for this 1% increase. But landed houses are still far from the advantage of apartments. Landed houses have good prospects from marketers and demand," said Marine.
https://www.cnbcindonesia.com/news/20220323114918-4-325232/tenangppn-naik-harga-rumah-belum-tentu
Jakarta - The planned increase in Value Added Tax (VAT) to 11% from 10% as of April has not affected house prices. According to the Country Manager of Rumah.com, Marine Novita, this is because there is still an incentive for VAT borne by the government (VAT DTP) which is valid until September 2022.
"Even though the VAT has been added to 11 percent, we are still given a 50 percent discount. Now that doesn't apply until September 2022. Later it should be after September or so until September we don't pay 11 percent, so around 6 percent. Because we still have purchase incentives," he said. Marine in the Rumah.com webinar, Wednesday (23/3/2022).
The VAT incentive for DTP itself is given at 50% for house sales with a maximum of IDR 2 billion, and 25% for sales of houses with prices above IDR 2-5 billion. This is stated in the Regulation of the Minister of Finance (PMK) Number 6/PMrK.010/22 concerning Value Added Tax on the Delivery of Landed Houses and Flats Borne by the Government for Fiscal Year 2022.
The amount of incentives has also been reduced from 2021. Where the previous year's house and apartment tax discount was 100% for residential with a price of up to IDR 2 billion, and 50% for property at a price of IDR 2 - 5 billion.
In addition, Marine sees that the interest in landed houses is still the highest at the moment, apartments. According to survey figures, more than 70% of housing seekers are still looking for landed houses. Even though as of September after the DTP VAT incentive runs out, the developer will adjust the price.
"Developers will adjust prices for this 1% increase. But landed houses are still far from the advantage of apartments. Landed houses have good prospects from marketers and demand," said Marine.
https://www.cnbcindonesia.com/news/20220323114918-4-325232/tenangppn-naik-harga-rumah-belum-tentu
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