Indonesia to offer new tax cut on property, car sales

Indonesia will provide another scheme of tax breaks for property and car sales this year to accelerate its economic recovery from the Covid-19 pandemic. Coordinating Minister of Economic Affairs Airlangga Hartarto disclosed that the government will provide a 50% discount on value-added tax (VAT) for sales of homes valued under IDR2bn and a 25% discount on VAT for homes valued at IDR2-5bn until June. Airlangga said several schemes of tax cuts will also be given for sales of cars worth under IDR250m, some of which will expire at the end of March, while others at the end of September. Health Minister Budi Gunadi Sadikin said the government is preparing the capital Jakarta as its “first battleground against Omicron”.