Property Taxes Are the Arab World’s Low-Hanging Fruit
Levies on real estate can help governments deliver social justice and jobs without hurting the investment climate.
Tax that asset.
Photographer: Hasan Shaaban/BloombergUnder increasing pressure from restive populations that are demanding economic opportunity and social justice, many governments in the Middle East and North Africa are keen to speed up economic growth and increase job creation. But their policies, for the most part, prioritize attracting foreign and domestic private investment—as well as increasing foreign borrowing—over the redistribution of income and wealth.
They are missing one low-hanging fruit in particular: property taxes. Increasing levies on real estate, and improving their collection, can help to address demands for social justice as well as spur economic development.