The Presidency explains how proposed tax changes are expected to improve housing affordability for Nigerians.

The Presidency has announced that the forthcoming Tax Reforms Bill is projected to significantly enhance housing affordability and accessibility for Nigerians. This initiative seeks to alleviate the tax burden currently affecting the construction and real estate industries.

Speaking at the Building and Construction Industry Forum in Abuja, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms, emphasized the Bill’s intent to benefit low-income earners, addressing prevalent misconceptions. Key provisions include the elimination of Value Added Tax (VAT) on real estate transactions, thereby reducing the cost of building materials and housing. Furthermore, exemptions on stamp duties for rents below N10 million per month and capital gains tax on the sale of dwelling houses are included.

These measures, according to Mr. Oyedele, are designed to directly address the cost barriers that hinder homeownership and contribute to a more robust and accessible housing market within Nigeria. The passage of the Tax Reforms Bill is therefore anticipated to play a crucial role in achieving a more equitable and affordable housing landscape for all Nigerians.