A value-added tax — essentially the reformed general sales tax is one as well — is regressive.
REDMOND, WA, US: This is with reference to Farooq Tirmizi’s article in the business pages of November 15 titled “Why the new tax is a good idea”.
A value-added tax — essentially the reformed general sales tax is one as well — is regressive. When wealth is so highly concentrated in our country, squeezing out every last bit from ordinary people is going to a) hardly result in any increased revenue and b) going to burden the already-crushed people even more.
What is needed is a progressive property tax, based on market-valuations. The proportion of wealth concentrated in the hands of these builders is increasing day by day and that means that their percentage to tax collection is falling.
Danish Munir
Published in The Express Tribune, November 16th, 2010.
