Pramono: Increase in Property Tax Rate Due to NJOP Adjustment

Jakarta Governor Pramono Anung threw his explanation regarding the public's complaints about the increase in Land and Building Tax (PBB) payments in Jakarta.

Actually, this is not about PBB, but because of NJOP

According to him, the increase in tax costs is not due to a change in rates but rather an adjustment of the Taxable Value of Property (NJOP) for houses, which has not been updated in some areas.

"The issue is that many areas' NJOP has not changed for 25 years, even though the rates are the same. It's the NJOP that has changed afterwards," Pramono explained, at the Office of Jakarta Public Works, Spatial Planning and Land Agency, Cideng, Central Jakarta, Wednesday (7/2).

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On the other hand, the free property tax (PBB) rate applies to houses with a NJOP below Rp 2 billion and to apartment flats below Rp 650 million.

He also mentioned that there was an adjustment to the NJOP reaching ten times higher in some locations. This was because property values in those areas experienced a drastic increase from before.

This significant increase in NJOP mostly occurs in elite areas. Despite it had caused complaints, the Jakarta Government remains committed to collecting the taxes.

"That's what then caused the increase that some communities complained about. But, the NJOP that rose significantly, sorry, on average, is in wealthy areas," he explained.

He also admitted that the high tax rates also occurred at his house in Cipete, South Jakarta, where the NJOP is still one-fifth of its current price.

"Actually, this is not about PBB, but because of NJOP," he asserted.

Nevertheless, the NJOP rate adjustment had had a positive impact on regional tax revenue. In fact, the tax revenue in Jakarta hit 47 percent, far exceeding the national average of only 32 percent.

"Last week, the national figure was only 32 percent; we are already at 47 percent," he stated.