Taxing homes

Taxing homes

From Suara Karya

We have heard much about delinquent developers. Some
developers have not kept their promise to build public facilities
in their housing complexes. Others developers have actually been
found to be fictitious.

But what surprises me most is that developers add 10 percent
value added tax to the sale price of all houses, including the
"very modest" category of homes. As far as I know, Presidential
Decree No 18/1986 exempts modest houses up to type 70 houses from
value added tax. I am sure that the developers know about this,
yet they continue to draw tax from the buyers. What if the
developers do not transfer the collected tax to the state
treasurer? The state will suffer a great loss.

To avoid confusion, the Directorate General of Tax must
explain the matter to the developers and prohibit them from
taking value added tax from the buyers in compliance with
Presidential Decree No 18/1986, which was revised into
Presidential Decree No 42/1995.

Name and addresses

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