Government Allocates Rp 3.4 Trillion for Housing VAT Waiver Extension to 2026

• The Finance Ministry will continue fiscal incentives for the housing sector in 2026.
• Rp 3.4 trillion is allocated for a VAT waiver on home purchases.
• The VAT waiver covers 40,000 commercial housing units priced up to Rp 2 billion.
• The aim is to support middle-class homeownership and stimulate all housing segments.
• Lower-income earners receive cash support for home upgrades.
• The 2025 budget includes Rp 3.38 trillion for a 100 percent VAT discount on home purchases.
• A full VAT waiver applies to homes bought between January 1 and June 30, 2025.
• A 50 percent VAT discount applies to homes bought between July 1 and December 31, 2025.
• The VAT discount applies to homes priced up to Rp 5 billion.
• Rp 57.7 trillion is allocated in the state budget for the 3 Million Homes program.

Source: thejakartapost.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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