The Presidency on Thursday said the Tax Reforms Bill, when passed, will make housing more affordable and available to Nigerians by reducing the tax burden on the construction and real estate sectors.
Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms, stated this at a Building and Construction Industry Forum in Abuja.
Speaking on the theme “Nigeria’s Tax Reforms and the Building and Construction Industry: Implications and Opportunities”, Oyedele said the bill has many benefits, but it is being misconceived by some people.
According to Oyedele, 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.
“The bill is designed in a way to favour low income earners contrary to what is being claimed, it will also ease their burden.
“There will be no VAT on lands, sale of real estate, and rent is exempted from VAT. Some of these are areas of controversies in the past.
“There is an exemption on stamp duties for rents below N10million a month and capital gains tax is also exempted on the sale of dwelling houses.
“The Tax Reforms Bill will improve the affordability of housing,” Oyedele said as quoted by NAN.
