JAKARTA. The plan to impose progressive tax on land ownership, capital gain on land transactions, and unutilized tax in idle land has sparked pro and contra. Aside of the land lords and the entrepreneurs, Directorate General of Taxation is also unsure about the plan. Chairman of Indonesian Real Estat Brokers Association (AREBI) Ronny Wuisan said, the policies will be facing major challenges at the implementation level, as the lands have the equal price. Therefore, a close cooperation with the local governments is necessary to ensure that the policy will be implemented properly. According to Ronny, the regulation will be misdirected if it is only targeting the property developers, on the grounds that many developers do not have significant numbers of landbank. Therefore, the policy also needs to target the individual land owners, such as the local entrepreneurs, he said.
Progressive tax on land sparked pros-cons
JAKARTA. The plan to impose progressive tax on land ownership, capital gain on land transactions, and unutilized tax in idle land has sparked pro and contra. Aside of the land lords and the entrepreneurs, Directorate General of Taxation is also unsure about the plan. Chairman of Indonesian Real Estat Brokers Association (AREBI) Ronny Wuisan said, the policies will be facing major challenges at the implementation level, as the lands have the equal price. Therefore, a close cooperation with the local governments is necessary to ensure that the policy will be implemented properly. According to Ronny, the regulation will be misdirected if it is only targeting the property developers, on the grounds that many developers do not have significant numbers of landbank. Therefore, the policy also needs to target the individual land owners, such as the local entrepreneurs, he said.