REPUBLIKA.CO.ID, BANDUNG -- Agrarian and Spatial Planning Minister Ferry Mursyidan Baldan said the plan to scrap land and building taxes (PBB) will only be applied to residential houses of lower-middle-class people.

"What we will carry out is not the elimination of all land and building taxes (PBB), but just to remove the PBB for lower-middle-class residential houses," the minister stated here over the weekend.

The misperception over the PBB scrap has caused a number of the regional governments rejected the planned elimination.

"I think the (central) government should explain this plan because the PBB is one of sources of the locally-generated revenue. They refused due to their misperception about the PBB, but the fact that what we will scrap is the PBB for the residential houses," the minister added.

He also called on the regional administration to further analyze the PBB which will be scrapped.

Previously, the minister said the plan to scrap land and building taxes (PBB) is aimed at improving people`s prosperity, though it will cut tax receipts.

Speaking to a press conference, the minister said that in essence taxes are collected for the prosperity of the people.

However, if the abolition of tax on land and building can alleviate the people`s burden, then this way could also be implemented for the prosperity of the people.

"We are of the view that what is increasing revenue for if there is another way that could be used to achieve that goal," the minister said.

It was reported earlier that Minister Ferry Mursyidan Baldan is considering scrapping land and building tax (PBB), which burdens the public.

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