The Independent on Sunday writes that developers fear the higher tax burdens on them, or eventually a more general tax on land as a result of the new Planning Gains Supplement (PSG).
The article suggests that PSG is one step toward a land value tax.
But one commentator, Dominic Maxwell of the Institute for Public Policy Research argues this would discourage owners from holding vacant land, or empty homes as opposed to the current tax on transactions which acts as a disincentive for building.
He also argues this would encourage council planners to approve developments and investments in their areas, as they would increase the value of the land being used and thereby increases revenue.
References: The Independent on Sunday Business 15/01/05 page 5
