A past president of the Africa Union of Architects, Tokunbo Omisore, says with the increase in Value Added Tax, the government should consider exempting locally-produced building materials.
Omisore, who is also the Chief Executive Officer, Top Services Limited, said the exemption would serve as an incentive and a boost to local manufacturing.
He said, “With the various challenges in the real estate industry if the government must insist on VAT, they should give exemption to the built industry, especially locally-produced housing materials.
“If this is considered, it will provide the support the national housing policy operators need to reduce the nation’s housing deficit that is present in excess of 17 million and still rising as our population remains unchecked.”
Omisore said the recent VAT increase from five percent to 7.5 percent would worsen the real estate sector as it would impact on construction works, rent and purchase without consideration for the poor economic performance of the sector in need of sustainable intervention.
“An exemption for the industry by the government may be a wise step to improve the real estate industry,” he said.
He explained that despite the exemption of real estate investment companies from paying tax on rental income, the newly introduced 7.5 percent VAT would affect the real estate industry through professional services and building materials used in the construction of buildings.
He said the increase might further raise the cost of real-estate delivery, the professional services, and building materials, adding that housing supply may, in turn, become unattractive and reduced.
SOURCE : PUNCH NEWSPAPER
The Lagos State Government, through the Lagos State Physical Planning Permit Authority (LASPPPA),...
a month ago Read MoreThe Federal Government has expanded the Abuja-Kaduna-Kano Road project to incorporate a direct...
a month ago Read MoreThe Federal Capital Territory Administration (FCTA) has taken possession of Wadata Plaza, the...
a month ago Read MoreDefaulters on FCT ground rent now have 14 days grace to pay up what they owe the FCT Administration...
a month ago Read MoreUnprofessional practices by estate agents in major cities are significantly influencing the spike...
2 months ago Read MoreA Real estate development firm, Lifecard International Investment Company, has revealed that many...
2 months ago Read MoreDespite a fall in investment volumes from the 2021 peak, there is an ongoing desire for property...
2 months ago Read MoreThe Lagos State government has advised the leadership of the Nigerian Institution of Estate...
2 months ago Read MoreReal estate market dynamics such as construction cost, land, finance, government policies and taxes...
2 months ago Read MoreEvent Set to Celebrate Managers Who Shape Careers and Drive Organizational Growth Business...
4 months ago Read MoreGlobal Leaders to Converge in Lagos for Landmark Event Driving Urban Innovation and...
4 months ago Read MoreIn a bold move to redefine affordable luxury housing, Nigerian real estate giant Gtext Holdings has...
4 months ago Read MoreIndustry Experts Urge Anti-Corruption Measures, Innovative Financing to Address Crisis By: Oche...
4 months ago Read MoreLAGOS, NIGERIA – Global real estate consultancy Knight Frank and UK developer Mount Anvil...
4 months ago Read MoreBy Oche Onum Lagos, Nigeria As Nigeria’s real estate sector braces for 2025, rapid...
4 months ago Read MoreBy Oche Onum Abuja, Nigeria In a landmark move to combat climate vulnerabilities in urban...
4 months ago Read MoreLAGOS, NIGERIA The Federal Government announced plans Wednesday to establish a Real Estate...
5 months ago Read MoreAccording to The Guardian's investigation, 70% of Nigerian states rely on manual land...
5 months ago Read MoreWhat is the Initiative? The Federal Government of Nigeria has unveiled an N100 billion private...
5 months ago Read MoreAbuja, Nigeria’s gleaming administrative capital, has long symbolized hope for migrants...
5 months ago Read More