JAKARTA (Reuters) -Indonesia will extend by one year a tax break for buyers of some properties until the end of 2027 to support the purchasing power of the middle class, the finance minister said on Tuesday.
The tax break is given to buyers of properties worth up to 5 billion rupiah ($300,000). Under the policy, the government covers the cost of value-added tax on up to 2 billion rupiah of the price of an eligible property.
“This will be enjoyed by (buyers of) 40,000 units a year. This will be like a support for the property sector,” Purbaya Yudhi Sadewa told a press conference.
($1 = 16,570 rupiah)
(Reporting by Bernadette Christina and Gayatri Suroyo; Editing by John Mair)
