NaijNaira
The Nigerian government is making significant changes to property taxation as part of its ongoing tax reform process. These changes aim to bring clarity to the property sector and ensure a more fair distribution of tax responsibilities.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, outlined the key changes during the Building and Construction Industry Forum in Abuja. According to PUNCH, one of the most significant reforms is the exemption of properties with rent under N10 million from paying stamp duties.
For properties with rents above N10 million, however, stamp duties will be applied. Oyedele explained that the higher tax burden on such properties is justified by the wealthier individuals’ ability to pay. He noted, “It’s not like we are punishing rich people; it’s just that they have a better ability to pay.”
Another key aspect of the reform is the exemption of capital gains tax on the sale of a person’s primary dwelling. This means that property owners who sell their primary homes will not have to pay taxes on the profits from the sale.
The government has also reduced the withholding tax on construction projects to a maximum of 2%. This change aims to reduce the burden on developers, encouraging investment in the sector.
In response to these reforms, housing developers have called for more incentives to stimulate investment in affordable housing. Developers argue that tax reliefs could lead to lower housing costs for Nigerians, ultimately helping meet the demand for affordable homes.
