Tuesday, 8 January 2008

Higher Tax on Unbuild Land, When?

"The Finnish capital region's labour shortage is to a large extent caused by expensive housing and transport, Pellerve Economic Research Institute (PTT) said in a report Tuesday."

I quite often disagree with the view of PTT that has somehow strong conflicts of interest in what they have said in the past. Nevertheless this time I could not agree more with what they are saying.

Indeed housing, transport, heating and food is becoming very expensive. Buying or Renting has never been so expensive in any historical comparison.

"The thinktank, funded by farmers' unions, added people were discovered from moving to the region because they were often better off unemployed outside it than working in it."

"The researchers who contributed to the report said part of the solution would be to raise the tax on unbuilt land and boost the supply of rental housing with temporary subsidies in the capital region."

I have been raising this subject long time ago. Unbuilt land should be Highly taxed and not used as a speculative instrument. The government has been dragging its feet on that while it was clearly highlighted to them by the OECD on a report few years ago .

In any episode of Land price boom, it has been always been followed by a bust. This will not be a different time.

Source : STT
Related : municipalities land

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