Land Bill to Exclude Proggressive Tax Scheme

President Joko Widodo asked the House of Representatives to delay in passing the land bill into law. The bill had worried several developers since the Agrarian and Spatial Planning Ministry planned to implement the progressive tax mechanism into it. However, the ministry canceled the plan previously intended for controlling land use. It might maximize the productivity of idle lands.

The progressive tax mechanism initially targeted all kinds of citizens, including those owning more than one piece of land. The scheme was not different from the progressive tax on motor vehicles. The land and building tax for the second land should be more significant than the tax on the first one. The mechanism, hopefully, could maximize the productivity of idle lands and avoid price manipulation from the land speculators.