Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has unveiled housing-focused tax reliefs under the new tax laws, declaring that land, buildings and rent are now completely exempt from Value Added Tax (VAT).
According to him, the tax reform, which has already taken effect, eliminates VAT on the purchase of land and completed buildings, while also removing VAT from both residential and commercial rent.
He noted that the move was aimed squarely at reducing the cost of housing, stimulating real estate investment and easing financial pressure on tenants and small businesses.
“Land and buildings are specifically exempt from VAT under the new tax regime. “This means that individuals buying land or completed buildings will no longer pay VAT on such transactions”, he explained.
He added that rent is equally free from VAT, a measure expected to lower accommodation costs nationwide. Beyond VAT removal, Oyedele dismissed viral claims suggesting that the new law imposes a 25 per cent tax on construction funds, bank balances or business expenses.
