2017, Jakarta Provincial Government Targets Rp 7.7 Trillion in Land and Building Tax Revenue

The Jakarta Provincial Government targets an 8.45 percent increase in revenue from Rural and Urban Land and Building Tax (PBB-P2) to Rp 7.7 trillion. This figure represents almost one-fifth of the total targeted tax revenue of Rp 35.2 trillion.

To achieve this revenue target, the Tax Agency has sent out PBB-P2 tax liability notices (SPPT) to taxpayers starting in February 2017. In addition to the PBB revenue target, the Jakarta Provincial Government also received the transfer of tax receivable management from the Directorate General of Taxes in 2013, amounting to Rp 2.8 trillion.

The number of SPPT issued in 2017 reached 1.54 million with a total tax bill of Rp 7.67 trillion. The highest PBB-P2 assessment value was in South Jakarta at Rp 2.54 trillion, followed by North Jakarta at Rp 1.78 trillion, and Central Jakarta at Rp 1.28 trillion. Since 2015, the Jakarta Provincial Government has exempted tax objects with a value below Rp 1 trillion and the Land and Building Acquisition Tax (BPHTB) for first-time home purchases.