Housing will be exempted from Value Added Tax (VAT) under the proposed tax reform bill, an initiative expected to make housing more affordable for Nigerians.
This was revealed by Mr. Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, during the Building and Construction Industry Forum organised by the Council of Registered Builders of Nigeria and the Housing Development Advocacy Network in Abuja on Thursday.
Speaking on the theme “Nigeria’s Tax Reforms and the Building and Construction Industry: Implications and Opportunities,” Oyedele stated that the tax reform bill offers significant relief to the real estate and construction sectors, contrary to earlier misconceptions.
According to him, the bill is tailored to ease the financial burden on low-income earners by removing VAT from land, real estate sales, and rental payments.
Additionally, rents below ₦10 million per month will be exempt from stamp duties, while capital gains tax will not apply to the sale of residential properties.
“The Tax Reforms Bill will improve the affordability of housing. It will provide relief for people who are paying rent because what this bill is going to do is remove a lot of the tax burden.
“The essence is to improve life for everybody and improve the economic activities in the building and construction sectors, and by extension, the whole of the economy.”
Also speaking at the forum, Mr Ahmed Dangiwa, the minister of Housing and Urban Development, represented by Temitope Gbemi, director of Public Building, said the ministry’s housing policies have been aligned with the reform agenda.
He noted that tax authorities are being urged to safeguard the interests of investors in the housing sector.
The Tax Reform Bill, originally submitted to the National Assembly by the Executive in October 2024, is designed to simplify Nigeria’s complex tax structure, improve compliance, and ensure sustainable revenue generation.
It is currently undergoing legislative review, with the National Assembly working to ensure it addresses key economic challenges.
