By: Tijani Salako.
The managing director of Fame Oyster & Co, Olufemi Oyedele, an expert in the built industry, has affirmed that the real estate industry set to benefit largely from the proposed tax bill, has the industry is expected to witness more entrants and investors.
The introduced tax policies are expected to have a positive impact on the country’s real estate sector. The policies, which aim to reduce the tax burden on individuals and corporate organizations, are anticipated to increase investment in the real estate sector.
This, exclusively was disclose to Standard Times Newspaper in interview, while exploring on the benefit the tax set to bring to individuals and corporate organisations.
According to Oyedele, the tax policies will increase disposable income for individuals, leading to increased investment in the real estate sector. The policies include an increase in the personal income tax exemption threshold from N300,000 to N800,000 per annum. This means that individuals earning up to N800,000 per year will no longer pay income tax, resulting in increased disposable income.
“The increase in the personal income tax exemption threshold is a welcome development, it will put more money in the hands of individuals, who can then invest in real estate. This will lead to increased demand for housing and a boost to the real estate sector.” Fame Oyster & Co manager said.
Additionally, the removal of withholding tax on personal property transfers is expected to make property investment more tax-efficient, encouraging more people to invest in properties. Withholding tax is a type of tax that is deducted at source when a property is sold. The removal of this tax will reduce the tax burden on property investors.
“The removal of withholding tax on personal property transfers is a significant development, it will make property investment more attractive and encourage more people to invest in real estate.”
Also, the analysis further incorporate that, the reduction in Corporate Income Tax (CIT) from 30% to 25% is also expected to boost the real estate sector. Companies will have more funds to invest in properties, leading to increased demand for housing and commercial properties.
“The reduction in CIT is a welcome development, it will reduce the tax burden on companies and give them more funds to invest in real estate. This will lead to increased economic activity and growth.”
However, real estate developers and investors are advised to take advantage of the new tax policies by adopting strategies such as cooperative estate development schemes, part-plot purchases, and public-private partnerships (PPPs).
“Real estate developers and investors should take advantage of the new tax policies to increase their investment in the sector. They should adopt strategies such as cooperative estate development schemes, part-plot purchases, and PPPs to maximize their returns.”
However, experts warn that the effective implementation of the new tax policies may be hindered by obstacles such as tax evasion, corruption, and lack of tax awareness.
“The effective implementation of the new tax policies requires a strong and efficient tax administration system,” said a tax expert. “The government should address the challenges of tax evasion, corruption, and lack of tax awareness to ensure that the new tax policies achieve their intended goals.”
The Nigerian government is urged to address these challenges and ensure that the new tax policies achieve their intended goals of promoting economic growth and development in the real estate sector.
“The government should ensure that the new tax policies are implemented effectively to promote economic growth and development in the real estate sector,” said a real estate expert. “This requires a strong and efficient tax administration system, as well as measures to address tax evasion, corruption, and lack of tax awareness.”
