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A 2% tax levied on the sale and purchase of property is a very good idea. This will not only be a good source of income, but also will bring on record all such transactions; thereby it will be possible for the government to lay their hands on those who do it with mal-intentions; eg, to whiten their black money, to manipulate property prices, to hide their wealth etc.
But the trouble is that the real value is not shown in the registration papers and a substantial portion is hidden from the records. The remedy I suggest is that the government should pass a law to the effect that the government will have a right to acquire any recently purchased property at a price 10 or 15% higher than the recorded price and then sell it to the highest bidder.
This law being in the best national interest can easily be approved by the parliament. This is the only effective remedy to curb this malpractice of "short pricing". Any comments from the readers will be appreciated.

Copyright Business Recorder, 2006

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