Abolishing stamp duty single best tax reform any government could make
Reacting to the Conservative’s pledge to abolish Stamp Duty Land Tax, Tom Clougherty, executive director of the Institute of Economic Affairs said: “Abolishing stamp duty is the single best reform any government could make to Britain’s tax system.
“As things stand, this outdated and uneconomic levy is wreaking havoc on our already troubled housing market – by deterring sales and depressing house-building.
“Indeed, research suggests that the wider social and economic harms are equivalent to three-quarters of the revenue raised – and that’s on top of the loss to the people actually paying the tax.
“This means that stamp duty is many times more damaging, as a source of revenue, than broad-based taxes on income and consumption.
“Any proposal to permanently cut or abolish it is therefore extremely welcome.”