Indonesia will introduce new tax breaks on property and automotive sales this year in a bid to accelerate its economic recovery from the COVID-19 pandemic.
According to Coordinating Minister of Economic Affairs Airlangga Hartarto, the Indonesian government will provide a 50% discount on value-added tax (VAT) for sales of homes valued under 2 billion rupiah (US$140,000) and a 25% discount on VAT for homes valued between 2 billion rupiah to 5 billion rupiah until June.
Related: Indonesia: Luxury Sales Tax to be Fully Eliminated on Vehicles with at least 80% Local Content
Airlangga said several schemes of tax cuts will also be given for sales of cars worth under 250 million rupiah, some of which will expire at the end of March, while others at the end of September. The Indonesian government had provided tax breaks for property and car sales last year under different schemes, which had expired in December 2021.
In addition to the moves aiming at stimulating economic recovery, Indonesia is also responding to the spread of the Omicron variant. New coronavirus infections in Indonesia rose to 1,054 on January 15, the highest in three months, amid reports of local transmission of the more contagious Omicron. The country reported 855 new infections on January 16, taking its total COVID-19 case tally to 4.27 million.
Source: ChannelNewsAsia
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