I am amused, or even amazed, at the failure of Nicky Bianchi (December 2) and various political exponents to realise that a sales tax is not a tax on the goods being sold (the property) but on the act or function of selling. It most certainly is neither analogous nor the opposite of a profits tax.

Applying this definitional concept to the recent Budget measures should make it clear that basing a sales tax on the value of a sale is only making use of a value reference point for calculation of what is due as the amount of tax payable. Within this approach, a sales tax would also be payable on the act of a property sale that incurs a loss.

But, as I said in an earlier contribution, it is also possible to draft such legislation in a manner that, on factually made losses – hence a rigid obligation of having updated valuations at time of sale (made by, for God’s sake, honest and competent government architects and not, as some ex parte vested interest spokesman recently wrote, by estate agents), plus supporting documentation of such losses – some form of reduction or exemption from such tax would be applied.

Within, then, the specific context of the local scenario, the imperatives remain unchanged, viz. that the hard core of thenon-clearing market segment of our national property stock (vide the recent national census for an idea of its size) be made to move, in some way or other (including via fear of a sales tax),and that the continued uglification of the country, which Malta’s developers have brought about, be stopped.