Property tax not feasible for economic growth
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RE: “What Rwanda needs to achieve 6.2 per cent economic growth” (The New Times, May 18)
The introduction of property tax is a rather disingenuous advice by the IMF representative. With a 250-300 thousand housing deficit in the country per annum, the introduction of property tax would further exacerbate this housing deficit.
I know all rentier systems – the IMF none the wiser – prefer angling in on property given it is a basic necessity (bottom-rung on Maslow’s hierarchy of needs).
But Rwanda tax officials should be wiser to the simple fact that base level wealth at the simplest human emotional level is vested in property ownership.
The mid-late 19th century railroads in the U.S. were built off the back of a wealth co-creation contract between the U.S. government and her citizens via the introduction of housing mortgage financial products by the banking barons (JP Morgan et al).
Rwanda – and Africa at large for that matter – shouldn’t be foxed into introducing such disincentivising tax that will negatively impact on her citizen’s basic human wealth psyche.
After all we know that wealth is superfluous and capricious at best. It’s mainly fiat (decreed).
Britain’s property bubble would pop almost immediately once property tax is introduced. Why then Rwanda?