[marcosdumay]

> Money changes hands so it's taxed with a purchase tax as a general rule.

That's called a "transaction tax". It has lots of well known issues that are incredibly hard to remedy.

[scotty79]

Can you point me to some reading about its drawbacks?

I know it is used widely for larger transactions of private individuals like buying a car or a house albeit with a small rate of about 2%

Since ownership of houses and cars is carefully tracked it's pretty impossible to dodge.