Real estate tax may increase the cost of housing

27.10.2008 00:00
"The proposal of the Cabinet of Ministers to impose a tax on real estate can stimulate the growth of housing values ??and hit ordinary people" - said Leo Partskhaladze, Chairman of Ukrainian Construction Association (UCA), commenting on a proposal правительства.Законопроект on real estate tax was approved at the meeting Government last week. According to the document, every year the owners of apartments and houses will have to pay 0,5 to 1% of the appraised value of the property.

Chapter UBA believes that today such a tax to enter early, the society will be ready for that six or seven years. Leo Partskhaladze said that "as a result of this decision will reduce the confidence of private investors to invest in real estate, and it will lead to a reduction in construction projects and will make housing even less affordable."

Head of Ukrainian Construction Association also stressed that the crisis needed to stimulate the production tax holiday, and not to raise taxes taxpayers.

Leo Partskhaladze also confirmed the readiness of UBA in conjunction with the Ukrainian Chamber of Construction will join to form the government group to prepare a temporary stabilization package for the construction industry in the global financial crisis and its impact on Ukraine.
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