The federal government has declared that the Tax Reform Bill, once enacted, will exempt real estate transactions from Value Added Tax (VAT), a move aimed at reducing the cost of building materials and housing.
This reform is expected to ease the financial burden on low-income earners and stimulate growth in the construction and real estate sectors.
Speaking at a forum organised by the Council of Registered Builders of Nigeria (CORBON) and the Housing Development Advocacy Network (HDAN), the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele outlined the bill’s transformative potential.
Oyedele stated that, with the Key Provisions of the Tax Reform Bill, ‘there will be no VAT on lands, the sale of real estate, and rent is exempted from VAT. Some of these have been areas of controversy in the past.’
He further highlighted additional tax relief measures, including the exemption of stamp duties for rents below N10million per month; Capital gains tax exemptions on the sale of dwelling houses.
These provisions are designed to make housing more affordable and accessible to Nigerians, while also addressing long-standing tax-related challenges in the real estate sector.
“The bill also includes priority sector incentives for the production of building materials, particularly non-metallic products, to enhance local manufacturing capacity. He said
Oyedele emphasised that, reforms will extend to land transactions, including titling and the harmonisation of property taxes, to streamline processes and reduce costs.
“The Tax Reform Bill will improve the affordability of housing.
It will provide relief for people paying rent by removing a significant portion of the tax burden. The essence is to make life better for everyone and stimulate economic activities in the building and construction sectors, and by extension, the entire economy,” Oyedele explained.
Oyedele urged Nigerians to seek accurate information about the reforms, cautioning against misinformation spread through social media, adding that, ‘this bill has many benefits, but it is being misconceived by some people. It’s important to understand the facts.’
Adding to the discussion, minister of Housing and Urban Development, Ahmed Dangiwa, expressed strong support for the bill, describing it as a game-changer for construction firms and contractors.
Represented by the director of Public Building, Temitope Gbemi; Dangiwa noted that, the ministry has aligned its housing policies with the fiscal reforms to ensure clarity, equity, and investor protection in real estate and housing investments.
