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.

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