Intiland Development ($DILD), Meeting Notes:
Cancellation of Property Progressive Tax Plan:
Regarding the regulation about progressive tax, the Government has said that they will not implement progressive tax for unoccupied property due to the weakness in the sector. The regulation will be reconsidered and there are currently no immediate decisions. The Ministry of Agraria and Spatial Planning said that the notion of progressive tax must be appropriate with the economic condition, and it will be discussed with other ministries.
We view this as positive news for property sector because we see the progressive tax to be a burden for property owners and buyers. We understand that the Government wishes to increase their tax revenue through property sector, however we have not seen any clear direction by the Government regarding the planned progressive tax. We also view that the plan for progressive tax overlaps current policies such as LTV and final sales tax for property. Therefore, the cancellation of this plan brings relief to the property sector. (Yualdo Tirtakencana)