The Presidency has announced that the Tax Reform Bill, once enacted, will improve housing affordability and accessibility for Nigerians by alleviating the tax burden on the construction and real estate sectors.
Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms, shared this information during a Building and Construction Industry Forum held in Abuja on Thursday. The event was organized by the Council of Registered Builders of Nigeria and the Housing Development Advocacy Network.
During his address on the topic “Nigeria’s Tax Reforms and the Building and Construction Industry: Implications and Opportunities,” Oyedele emphasized that while the bill offers numerous advantages, it has been misunderstood by some.
He explained that if the bill is passed, Value Added Tax on real estate transactions will be eliminated, which will subsequently reduce the costs of building materials and housing.
The bill is structured to benefit low-income earners and, contrary to some claims, it will alleviate their financial burdens.
There will be no VAT on land transactions, real estate sales, and rent will also be exempt from VAT. These issues have been contentious in the past.
Additionally, there will be an exemption from stamp duties for rents under N10 million per month, and capital gains tax will not apply to the sale of residential properties, he stated.
Oyedele further noted that the bill includes incentives for the production of building materials, particularly non-metallic products, to enhance production.
He mentioned that reforms will be implemented regarding land transactions, including property titling and the standardization of property taxes.
“The Tax Reforms Bill aims to make housing more affordable. It will provide relief for renters by significantly reducing their tax burden.
“The goal is to improve the quality of life for everyone and stimulate economic activity in the construction sector.”
Oyedele urged Nigerians to deepen their understanding of the tax reforms and to avoid depending on misleading information from social media and sensational headlines.
Similarly, Ahmed Dangiwa, the Minister of Housing and Urban Development, stated that the bill provides comprehensive relief for construction companies and contractors.
Dangiwa, who was represented by Temitope Gbemi, the Director of Public Building, noted that the ministry has fully integrated its housing policies with fiscal reforms.
He also mentioned that they are collaborating with tax authorities to ensure that real estate and housing investments are characterized by clarity, fairness, and protection for investors.
