My other observation is that the tax is likely to deflate the real estate industry since a lot of retirement and savings assets are channeled into the sector and might escalate the housing deficit in urban centers even further. This new taxhead is also likely to have the negative implication of wiping out savings of the many investment club groups who buy land and hold for future development.
The proposed law is attempting to upset the known principles of taxation and the structure of the Income Tax Act, by applying capital gains taxation rules to what essentially are revenue trades. This may later backfire by creating tax avoidance and aggressive tax planning loopholes in the Income Tax Act for well advised businessmen to exploit and curve tax obligations altogether, and I believe this will be a consequence of this proposed law.