Banking - Property stimulus to benefit banking
Banking - Property stimulus to benefit banking A number of banks have responded positively to the Government's plan to provide various stimuli for the housing sector, ranging from Government Borne Value Added Tax (VAT DTP) to incentives for low-cost housing administration costs for low-income people (MBR). The government plans to cover VAT for house prices up to IDR 2bn. This policy will apply from November 2023 to December 2024. The plan is that there will be 2 stages of implementing the DTP VAT incentive. In the first stage, tax incentives will be given at 100% in November 2023-June 2024. In the second stage, they will be given at 50% for the period July-December 2024. (Source: Kontan). Comment : We believe the stimulus will create meaningfull impact to the mortgage loan segment demand. What’s more, amid the continuing loan repricing to adjust with rising benchmark rate, the stimulus will offer additional confidence to the potential property buyer.