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Indonesia: Property businesses take hit from increase in taxable value of property
The taxable value of property (NJOP) in Jakarta has increased by 19.54 percent from the previous year, affecting property businesses in the capital that already find themselves in a difficult situation.
“Currently, many people do not want to buy property because of the high prices and because of the taxation issue,” said the chairman of the Indonesian Real Estate’s Jakarta chapter, Bambang Ekajaya, in Jakarta on Thursday as reported by kontan.co.id.
The announcement of the NJOP increase would affect property businesses because of “unreasonable” property prices, Bambang said, adding that it was already “difficult to sell property because of such unreasonable prices”.
“There is property that I want to sell. According to the NJOP, the price [should be] Rp 5 billion (US$347,061), but it is only priced at Rp 3 billion. The gap is too large,” he added.
Bambang said that people living in plush areas like Menteng in Central Jakarta were overburdened with taxes and that a person with 1,000 square meters of land had to pay an annual tax of between Rp 300 million and Rp 400 million.
“With such conditions, some people prefer to sell their property, while others prefer not to pay the tax,” he added. (bbn)
Source: http://www.thejakartapost.com/news/2018/07/06/property-businesses-take-hit-from-increase-in-taxable-value-of-property.html