Indonesia reinstates full tax break for property purchases until December

INDONESIA plans to reinstate the full tax break on property purchases worth up to five billion rupiah (S$420,454) for the second half of 2024 to help support demand, its chief economic minister said on Tuesday (Aug 27).

Under the policy, the government covers the cost of value-added tax on up to two billion rupiah of the price of an eligible landed house or apartment purchase.

Before Tuesday’s change, the policy of covering 100 per cent of the VAT component had ended in June and the government was only rebating 50 per cent of the tax until the end of the year.

Chief economic minister Airlangga Hartarto said the change aimed to support the purchasing power of middle class, which he said had been declining due to ongoing effects of Covid-19 pandemic. REUTERS