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