SBI PO 2011 · Question 126 of 182

Read the following paragraph and answer the question which follows. ‘Tenants associations have demanded a ‘vacancy tax’ on all vacant and unsold flats in Mumbai.’’ Which of the following would ‘support’’ the demand made by the tenant’s association?

1. AHouse owners too have demanded for laws that make it easier to evict tenants who default on rent payment.
2. BSuch a tax law would be difficult to implement as it would be difficult to record the number of vacant flats in the city.
3. CPeople with surplus money buy many houses and rent these out while many consumers cannot afford even their first house.
4. DThe number of vacant flats in Mumbai is much lower than other metros such as Delhi and Chennai where vacancy tax already exists.
5. ESuch a tax would compel the house owners to sell/rent properties which in turn would control hoarding and sky rocketing of property prices.Correct