FG clarifies Nigeria Tax Act 2025, denies 25% tax on building materials
The Presidential Fiscal Policy and Tax Reforms Committee has dismissed false claims that the Nigeria Tax Act 2025 imposes a 25% tax on building materials, bank funds, or business expenses. The Act, which commenced in June 2025, focuses on reducing housing costs and supporting small businesses instead. Key measures include VAT exemptions on land, buildings, and rent, input VAT credits for contractors, and a reduced 2% Withholding Tax on construction contracts. Renters receive up to ₦500,000 annual relief, while lease agreements below ₦10 million are exempt from stamp duty. Property owners can deduct repairs and insurance from rental income. Investors gain Capital Gains Tax exemptions on dwelling houses, and Real Estate Investment Trusts must distribute at least 75% of income. Manufacturing of building materials like iron and steel qualifies for 10-year tax exemptions. Small companies benefit from zero corporate tax and VAT exemption. The committee urged Nigerians to rely on verified law provisions rather than fear-mongering misinformation.