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Indonesia Plans to Cut Property Taxes to Stimulate Economy

Published Nov 22, 2018, 3:12 PM

 

JAKARTA, Nov 22 (Reuters) - Indonesia plans to cut taxes on luxury properties and revise other tax rules in a bid to support the real estate industry and attract investment in Southeast Asia’s biggest economy, Finance Minister Sri Mulyani Indrawati said.


The threshold for a luxury tax of 20 percent applied to houses and apartments would be raised to at least 30 billion rupiah ($2.06 million) from 20 billion rupiah, she said in comments published on the cabinet secretary’s website late on Wednesday.


Sales of luxury property will also be subject to a lower tax of 1 percent of the selling price, against 5 percent now.


“We hope the business side of the construction sector will be boosted,” Indrawati said. She did not give a timetable and said the regulations were currently being formulated.



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