Governor: Jakarta Residents Get PBB Relief through Fair and Equitable Policy

On Indonesia's 77th Independence Day, the Jakarta administration brings justice and equality to its residents with fair and equitable tax policies.

We give a gift in the form of a fair and equitable tax policy for all Jakarta residents

It is contained in the Gubernatorial Regulation number 23/2022 on Policy for Determination and Payment of Rural and Urban Land and Building Taxes (PBB-P2) as an Effort for Economic Recovery in 2022.

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In line with that, the administration held an activity "Jakarta Tax, Fair, and Equitable for All" at Madusela RPTRA, Sawah Besar, Central Jakarta today, Wednesday (8/17).

Jakarta Governor Anies Baswedan symbolically gave the PBB-P2 Electronic Tax Return (e-SPPT) 2022 to 25 representative taxpayers from each administrative city in Jakarta.

"In the spirit of this year's independence celebration, we give a gift in the form of a fair and equitable tax policy for all Jakarta residents. This fair and equitable tax policy is also a concrete manifestation of Pancasila as the basis of the Indonesian state present in the lives of residents, namely the fifth principle of Social Justice for all Indonesian People," he expressed, as quoted by Jakarta PPID's press release.

With this policy, buildings under Rp 2 billion would be free of the PBB, moreover, there are 1.4 million houses in Jakarta. Some whose value is above Rp 2 billion around 200,000 houses, and those whose value is below Rp 2 billion are 1.2 million houses.

"By so, 85% of residents and buildings in Jakarta are free of the PBB, except those above Rp 2 billion but even then there is an exception," he explained.

He went on to say that the basis for making policies that consider the minimum area of land and buildings for simple healthy houses, is 60 m² for land and 36 m² for buildings.

"This is because 36 m² is a necessity for human life, as it needs a place to live. Then a minimum figure of 36 m² is used, as well as land. This basis refers to the Minister of Public Works and Public Housing, which regulates the minimum standard of living (housing). So, around Rp 2.7 trillion in total tax from housing that the government usually received before this policy, can be saved by residents for their economic interests," he added.

Aside that, one of the beneficiaries of this tax policy was Indrasari, a resident of Jalan Mangga Besar XIII No. 6, RT 003/RW 001 which at that time was represented by her brother, Florensia, was happy, and hoped that this policy would continue.

"I thank you for the presence of this Fair and Equitable Tax policy. Hope this continues thus anyone can enjoy policies that can make it easier for the community," she concluded.

As for the information, these taxpayers benefit from Gubernatorial Regulation number 23/2022:

1. Policy for Issuing SPPT PBB 2022

a) Residential objects belonging to private persons

1) NJOP < Rp 2 Billion: Freed 100%

2) NJOP > Rp 2 Billion: given a Deduction Factor (based on the need for a minimum area of land and buildings for Healthy Simple Houses, which is 60 square meters for the earth and 36 square meters for buildings) and 10% exemption

b) Apart from the residence, 15% are exempted

2. 2022 United Nations Payment Policy

a) Tax relief and elimination of administrative sanctions

1) Fiscal Year 2022:

• 15% discount if paying between June - August 2022

• 10% discount if paying between September - October 2022

• 5% discount if paying between November 2022

Sanctions are removed 100% for payments 1 month after maturity

2) Fiscal Year 2013-2021:

• 10% discount if paying between June - October 2022

• 5% discount if paying between November - December 2022

• Sanctions removed 100%

b) Principal tax installments and elimination of administrative sanctions for taxpayers with PBB stipulations above Rp 100 million

1) Fiscal Year 2022:

• 15% discount if paying between June - August 2022

• 10% discount if paying between September - October 2022

• 5% discount if paying between November 2022

• Sanctions are removed 100% for payments 1 month after maturity

2) Fiscal Year 2013-2021:

• 10% discount if paying between June - October 2022

• 5% discount if paying between November - December 2022

• Sanctions removed 100%

In addition to the symbolic e-SPPT event for taxpayers. he also conveyed information on the administration's policies related to local tax incentives for the community which is still in effect and as part of Jakarta's economic recovery efforts, including:

a. United Nations Liberation Policy for Teachers and Education Personnel, Lecturers and Higher Education Education Personnel, Indonesian Veterans, Pioneers of Independence, Recipients of National Hero Titles, Recipients of Honors, Former Presidents and Former Vice Presidents, Former Governors and Former Vice Governors, Retired Indonesian National Armed Forces/Indonesian National Police, and Retired Civil Servants as stipulated in Gubernatorial Regulation number 19/2021

b. Policy on the Imposition of 50% PBB & Reduction of PBB-P2 in the Private Education Sector as stated in Gubernatorial Regulation number 91/2013

c. Policy on the Imposition of 50% PBB & Reduction of PBB-P2 to Private Hospitals as stated in the Gubernatorial Regulation number 90/2013

d. PBB-P2 Reduction Policy as stated in Gubernatorial Regulation number 211/2012

e. Policy for Providing Incentives in the Form of Tax Relief and Elimination of Administrative Sanctions as stated in Gubernatorial Regulation number 90/2019, number 115/2020, and number 60 jo. 104/2021

There are still several regional tax exemption policies, especially PBB-P2 for Jakarta residents that are currently in process:

a) PBB-P2 exemption for agricultural land

b) PBB-P2 exemption for private education tax objects