REPUBLIKA.CO.ID, JAKARTA -- President Joko Widodo has ordered the Agrarian and Spatial Planning Ministry/State Land Agency (ATR/BPN) to continue to study the plan to scrap the land and building tax (PBB) and to reformulate the sales value of tax objects (NJOP).

"On April 1, the ministry presented the reformulation of the NJOP and the PBB at a limited meeting, which was attended by the president, vice president, coordinating minister for economic affairs, home affairs minister, finance minister, and the cabinet secretary," ATR Minister/BPN Head Ferry Mursyidan Baldan said here on Monday (7/4).

Baldan added that the limited meeting recommended that the ministry go ahead with its study to reformulate the NJOP and scrap the PBB for low-income people.

The president also asked the ATR Ministry/BPN to coordinate with the Home Affairs Ministry, Finance Ministry, and regional governments to do so.

The reformulation of the NJOP reflects the government's step to control land prices, while the PBB was fees imposed on tax subjects, he explained.

"In fact, the PBB is not a fee on land and buildings, or tax objects," Baldan pointed out.

Therefore, the government needed to take into account the financial capacity of tax subjects to pay the PBB by providing them with allowance or tax holidays, he remarked.

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