THE GOVERNMENT’S SHARE

Taxation is at the heart of an economy. It cannot be seen just as an “add on” that scoops revenue for the government. Worldwide experience has shown that taxation policy can either help the economy – or harm it. We all need government investment in infrastructure from roads to telecommunications. But if too high, taxation can be an impediment to the private sector, especially during a recession when companies are experiencing liquidity problems. By international standards, property taxes in Lebanon are high. This harms not just the real estate market, but all those sectors that need to rent or buy property. The purchase tax, for example, is 6.5%, or 16% in the case of foreigners. This compares to the UK where the rate is l % for property valued under $350,000, rising to 3% for properties valued above $700,000. In Kuwait, it is just 0.5%. This means that anyone buying