Dear Editor,

I saw a recent advertisement of land for sale. The location of the property and the sizes available appeared attractive for the middle income person and I was immediately tempted. But then I realised that in addition to the cost of the land, the stamp duties, lawyers’ fees on transfer, lawyers’ fees on mortgage, and mortgage interest, value-added tax at 16% was payable!

The government of course could sell land without levying such taxes but you’re restricted to locations where they have housing schemes. You have to wait a minimum of four years before your application is ready to be examined and then you start to worry about whether you have a fair chance at the good lots and whether the roads will ever be taken care of.

Under previous tax regimes, no such tax was payable on land. So why is VAT now payable on land which I will use for my primary residence. I haven’t started to think about the building costs as yet and what further taxes I will be faced with when I start to build. The government wants us to help build the nation. We want to help build the nation. But the conditions are harsh.

Yours faithfully,
(Name and address provided)