Stakeholders urge FG to address multiple taxations in real estate industry
By Emmanuel Oloniruha
Stakeholders in the real estate sector has called for measures including legislation to address the multiple taxations in the real estate industry.
The Chairperson, International Real Estate Conference 2022, Ajayi Franklin, at the maiden edition of the conference in Abuja, with theme of the conference was “ place of technology, finance, government policies and the environment in the housing provision in today’s Africa.”
Franklin said it could be frustrating when real estate developers pay “countless taxes, levies and fines out of the little you make from your investment. It affects business adversely.”
“If the right and proper legislation is in place, that should be addressed,” he said adding that the members of the Real Estate Developers Association of Nigeria (REDAN) are already working on ensuring that it was in place.
He said that the conference provided an avenue to unearth the various opportunities that abound in the Real Estate Market.
Franklin said that real estate remained a very strong and powerful investment all over the World.
“Apart from the role it plays in employment generation and the creation of sustainable jobs, the Real Estate Market has the highest potential of growing the economy of any State/ Nation.
“As viable as this sector is economical, having the right information and understanding the operational environment by investors or investees is very key.
“This can be achieved through coaching and professional conferences like this.”
Franklin said there was need for all stakeholders to know the policies put in place and how the knowledge of all the policies could assist them in making informed decisions in respect of our investments.
“Owning a home is not just a fundamental human right; its impact is unimaginable as it helps in strengthening economic development, yielding return on investments and delivering Sustainable Development Goals in Nation Building.
“I enjoin all practitioners and professionals to join hands with in the drive to provide world-class real estate investment solutions, construction management services and sustainable housing delivery with international Standard,” Franklin said.
The keynote speaker, Kennedy Iwundu, also called for a regular review of property tax (real estate tax) in Nigeria to meet up with modern needs and challenges.
Iwundu listed some of the taxes in real estate in Nigeria stamp duties, value added tax, capital gains tax, personal income tax, tenement rate, land use charge/ ground rent, consent fees, registration fees, estate duty, withholding tax, and companies income tax.
He said that property tax in Nigeria was designed in such that multiple jurisdictions may tax the same property.
“In real estate tax in Nigeria, Federal, State and Local government are given the jurisdiction to tax properties depending on location and nature of tax or levy to be taxed.
“For instance, in Abuja, while the FCT Administration is taxing a property on the basis of ground rent, the municipal is also taxing the same property on tenement rate.
“This is a result of multiple jurisdictions seen in real estate taxation in Nigeria,” Iwundu said.
He called for harmony among federal state and local government on taxes on property (real estate) transactions in Nigeria.
“There seems to be disharmony among the various levels of government when it comes to property tax in Nigeria.
“There is need to have a regular review of property tax (real estate tax) in Nigeria so as to meet up with modern needs and challenges.”
Iwundu also called on government to intensify effort to increase revenue collection through the capital gains tax.
He said that so may properties were bought and sold and capital gains tax was not collected.