The Presidential Fiscal Policy and Tax Reforms Committee has issued a strong clarification to dismiss what it describes as “misinformation” being peddled by former Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi, and other social media commentators regarding the newly enacted Nigeria Tax Act 2025.
In a statement released on Sunday, the Committee addressed a viral video circulating online that allegedly features Amaechi and other writers making claims that the new tax laws would impose a 25% levy on building materials and funds meant for construction.
The Committee labelled these assertions as completely false and an attempt to create fear and panic among Nigerians.
“Contrary to the misinformation seeking to create fear, panic and disaffection, the Nigeria Tax Act 2025 has already commenced and does not impose a 25% tax on construction funds, bank balances, or business expenses,” the statement read.
The Committee emphasized that far from taxing building materials, the Act contains specific provisions designed to reduce the cost of housing, encourage real estate development, and protect tenants and small business owners.
Housing Relief, Not a Tax Hike
Outlining the “Key Provisions” of the Act, the Committee highlighted several measures aimed at making housing more affordable. These include a VAT exemption on land and buildings and rent, allowing contractors to recover input VAT to lower construction costs, and a reduced 2% withholding tax for construction contracts to ease cash flow for developers.
“The Act does not tax money in bank accounts, does not tax transfers for buying building materials, and does not introduce a 25% construction tax,” the Committee reiterated.
Direct Benefits for Renters and Homeowners
The Committee also pointed to direct financial relief for individuals, including a rent relief allowance of up to โฆ500,000 (or 20% of annual rent) for low-income earners and an exemption from stamp duty for lease agreements below โฆ10,000,000.
They further clarified that mortgage interest is now tax-deductible for individuals building their own homes, and individuals paying no Capital Gains Tax when selling a dwelling house.
“Fact Not Fear”
In a direct response to the claims made by Amaechi and the authors of the viral video, the Presidential Committee urged Nigerians to rely on evidence rather than emotion.
“If anyone makes an alarming claim or tries to misinform you, ask them: ‘Where is it in the law?'” the statement advised, emphasizing the principle of “Fact Not Fear.”
The Committee concluded on an optimistic note, asserting that with the implementation of the new tax laws, “housing should become more affordable and rent should go down NOT up!”
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