Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, don announce say land, buildings and rent now fully exempted from Value Added Tax (VAT) under the new Nigeria Tax Act 2025.
According to Oyedele, the law don already start, and one of the main aims na to reduce housing cost, encourage investment for real estate sector and ease financial pressure on tenants and small businesses.
He explain say under the new tax regime, anybody wey dey buy land or completed building no go pay VAT again. The exemption also cover both residential and commercial rent, meaning say landlords and tenants no go worry about VAT on rent payments.
Oyedele talk say the move go lower overall property transaction cost and make accommodation more affordable for Nigerians.
On construction matter, he clarify say even if VAT dey charged on some building materials or services, contractors fit now recover the VAT wey dem pay on assets and overhead costs through input VAT credit. This, he say, go reduce construction expenses and help developers manage projects better.
He also dismiss rumour wey dey circulate say the Nigeria Tax Act 2025 introduce 25 per cent tax on construction funds, bank balances or business expenses.
“Contrary to misinformation wey dey create panic, the Nigeria Tax Act 2025 no impose any 25 per cent tax on construction funds, bank balances or business expenses,” Oyedele write for him WhatsApp platform on Sunday.
He add say the law no tax money wey dey for bank account, no place levy on transfers to buy building materials and no introduce any special construction tax. He also clear the air say implementation no shift go 2027 as some messages claim.
On construction contracts, Oyedele disclose say Withholding Tax don reduce to two per cent, to allow developers keep more cash flow and reduce borrowing cost.
He further explain say mortgage interest wey individuals pay to build their own houses now tax-deductible. According to am, this provision go encourage more Nigerians to own their homes.
Landlords too fit deduct expenses like repairs, insurance and agency fees before calculating tax on rental income, a move wey he say go reduce burden and promote better property maintenance.
Oyedele add say small companies go enjoy zero per cent Companies Income Tax. Dem also no go charge VAT and no Withholding Tax go deduct from their invoices, giving small contractors and suppliers more opportunity to grow.
He insist say claims of new tax on building materials or bank funds no correct and misrepresent the law.
Observers believe say the Nigeria Tax Act 2025 fit reshape housing and property sector if properly implemented.
