The decrease in tax for luxury goods sales from five to one per cent will officially be initiated by a Finance Ministerial Regulation or PMK No.92/PMK.03/2019. The policy was issued on 19th June 2019.
According to the regulation, the 1 per cent tax for luxury goods will be valid for houses and land with a selling value above Rp30billion, and buildings with an area of over 400 square metres.
The rules will also apply to apartments and condominiums with a value of above Rp30billion and an area of 150 square metres. The tax cut aims to support businesses that operate in the property industry.