The Nigerian Presidency has provided insight into how the proposed Tax Reforms Bill will significantly improve housing affordability for Nigerians.
The new bill, if passed, is expected to ease the tax burden on the construction and real estate sectors, which in turn will help make housing more accessible to a larger portion of the population.
Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, discussed the bill’s provisions during a recent Building and Construction Industry Forum held in Abuja.
According to Oyedele, one of the most crucial aspects of the bill is its exemption of Value Added Tax (VAT) on various real estate transactions, including land sales, property rentals, and the sale of dwelling houses.
This exemption is designed to reduce the overall cost of acquiring property and make it easier for Nigerians to engage in real estate transactions without the added financial strain that VAT typically imposes.
Furthermore, the bill proposes to exempt stamp duties on rents for properties with values below ₦10 million per month, as well as the removal of capital gains tax on the sale of residential properties.
These measures aim to alleviate the financial challenges faced by low-income earners, who often struggle to afford housing due to the additional tax burdens placed on the sector.
Oyedele emphasized that the bill’s intent is not only to make housing more affordable but also to stimulate growth in the housing sector by incentivizing more investment and participation.
The tax reforms, according to Oyedele, will encourage the development of the housing industry, addressing the housing deficit and fostering a more inclusive economy.
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cc: Daily Post Ng
