Postpone tax on property

Postpone tax on property

From Bisnis Indonesia

For the sake of economic recovery and maximizing job
opportunities, it is necessary, I think, for the coordinating
minister for economy, finance and industry to consider postponing
the implementation of taxation policies in the field of property,
namely the postponement of levying income tax amounting to 5
percent payable by the seller (PPh) in property trade and another
5 percent to be paid by the buyer for the cost of transfer of
ownership (BBN).

The above policy which was made by the minister of finance and
the director general of taxation at that time was quite effective
in slowing down the overheating economic condition. Besides it
also added additional state revenue. However, in the current
lengthy economic crisis, and in today' overcooling economic
condition, such a policy, if implemented, will cause stagnation
of economic growth.

If this policy can be temporarily reviewed, the business of
property will recover fast like it was before the crisis and
millions of workers can be absorbed in a short time including in
the secondary market (office building/ house renovation, etc).
Accordingly, the economy will rotate very fast because the
ongoing effect of this property business is extraordinary.

With Indonesia's rate of unemployment at such a high level,
efforts to create work opportunities in the labor intensive
property business sector in addition to the agribusiness sector
will help the economic recovery process considerably.

KARNADI SADELI

Jakarta