‘Tax reform bill will boost access to housing, exempt VAT’

The Federal Government has assured stakeholders in the housing sector that the tax reforms bill, when finally passed, will trigger increased access to affordable housing, reducing the tax burden on the construction and real estate operators.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, gave the assurance at a forum, entitled: “Nigeria’s Tax Reforms and the Building and Construction Industry: Implication and Opportunities”, organised by the Council of Registered Builders of Nigeria (CORBON) in collaboration with Housing Development Advocacy Network.

Oyedele said that contrary to the misconceptions by the public against the bill, it has many benefits, adding that when the bill becomes law, Value Added Tax (VAT) on real estate transactions will be exempted, thereby lowering the cost of building materials and houses.

According to him, the bill is designed in a way to favour low-income earners; contrary to what is being claimed, it will also ease their burden.

The Chairman pointed out that there will be no VAT on lands, sale of real estate, while rent is exempted from VAT as against what was in operation in the past.

There is an exemption on stamp duties for rents below N10 million a month, and capital gains tax is also exempted on the sale of dwelling houses.

Oyedele further disclosed that reforms will be carried out on land transactions, including titling and harmonisation of property taxes.

Chairman of CORBON, Dr Samson Opaluwah, highlighted that poor access to finance and multiple taxation as major drawbacks toward the expansion of the council’s potential. He expects the tax reform bill to address the challenges faced by operators in the housing sector and boost availability and accessibility to more Nigerians.

The Executive Director of HDAN, Festus Adebayo, said the VAT exemption on lands, real estate and building materials producers was a welcome development.

However, he called for incentives that would enable real estate developers and investors to build low-cost houses for low-income Nigerians.

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