Housing incentives: State’s token ‘sweeteners’ have never worked

The government has not been short of incentives meant to cushion the cost-intensive sector from market volatility. In 2008, the government came up with a raft of incentives targeting developers of low-income housing. Like the current proposal, in which developers are meant to get a ten per cent corporate tax rebate, not many developers were optimistic about the incentives.

“The Minister for Finance may remit (exempt) VAT payment in respect of construction of not less than 20,000 housing units for low-income earners on the recommendation of the minister responsible for housing in line with regulations set out under legal notice No. 115 of 2008,” stated the government in 2008.