By Maduka Nweke
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has revealed that property rentals under N10 million will be exempt from stamp duties under the new tax reform bills currently before the National Assembly.
Speaking in Abuja at the Building and Construction Industry Forum — themed “Nigeria’s Tax Reforms and the Building and Construction Industry: Implications and Opportunities” — Oyedele said the reforms were designed to provide clarity and fairness in tax administration, especially for low- and middle-income earners.
“What we have done in the reform bills is to make them very clear so there is no debate. Also, we have added that there will be a stamp duty exemption for rents that are below N10m,” he said.
He explained that the exemption is targeted at ordinary Nigerians, most of whom rent homes rather than own them. “So if you’re paying rent, which is what many people will do because they don’t own a house, you won’t have to pay stamp duties unless you’re a rich person who is paying a lot. It’s not like we are punishing rich people; it’s just that they have a better ability to pay,” Oyedele said.
He further stated that “capital gains tax is exempted on the sale of your dwelling house,” adding that “withholding tax on construction will now be a maximum of two per cent, which means the rate is significantly reduced.”
The Executive Director of the Housing Development Advocacy Network, Festus Adebayo, urged the committee to introduce tax incentives to encourage developers to invest in affordable housing.
“Since the tax reform is still in the National Assembly, the tax committee should consider the idea of putting an incentive, tax rebate, or anything that can encourage some of those developers or investors to go into the delivery of low-cost housing. Because today, the majority of those estate developers are facing a lot of hurdles in the area of rents and fees they pay in many places,” Adebayo said.
Also speaking, the Managing Director of Urban Shelter, Sa’adiya Aliyu-Aminu, underscored the importance of taxation in national development. “Proper taxation will reduce reliance on oil, enhance accountability, and make the sector more attractive to local and foreign investors,” she said.
Chairman of the Council of Registered Builders of Nigeria (CORBON), Samson Opaluwah, said the forum was convened to examine how the proposed reforms could stimulate growth in the construction sector.