Prabowo Plans to Abolish VAT and BPHTB to Build 3 Million Houses

JAKARTA. To encourage the growth of the property sector, president-elect Prabowo Subianto will abolish the imposition of Value Added Tax (VAT) and Fees for the Acquisition of Right to Land and Building (BPHTB).

This was conveyed by the head of the Prabowo administration's Housing Task Force, Hashim Djojohadikusumo. According to Hashim, the community will get a relaxation of up to 16%, which comes from the exemption of 5% BPHTB and 11% VAT.

Quoting cnbcIndonesia.com, the provision of these facilities will have an impact on reducing state revenue. Therefore, the government will cover the potential loss of revenue from other sources of revenue.

Prabowo's Housing Development Program

Encouraging the growth of the property sector is one of the programs of the new government under Prabowo. The new government will build 3 million houses per year, with details of 1 million in urban areas and 2 million in rural areas.

Village housing construction is planned to be carried out by small contractors, Micro, Small, and Medium Enterprises (MSMEs), and Village-Owned Enterprises (BUMDes). Meanwhile, building houses in urban areas is open to large contractors.

Thus, in his five-year leadership period, Prabowo promised to build 15 million houses for the community. (ASP)