The Presidential tax reforms committee has denied claims made by former Minister of Transport, Rotimi Amaechi, that the new tax law will see an imposition of 25% tax deduction on all building materials if President Tinubu wins the 2027 presidential election. While speaking to traders over the weekend, Amaechi said By February next year, all of you will be in trouble if APC wins. Go and check, there is a tax law. Just ask Tinubu why is the tax law not being implemented? Immediately after the election, APC will implement the tax law. The tax law is that if I pay you N100 million for your building material, automatically, N25 million will leave your account.If you say it’s a lie, take my statement to your lawyer”Reacting to his statement, the Presidential Fiscal Policy and Tax Reforms Committee, said Amaechi’s claims is incorrect. It stated that Contrary to the statement 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. Instead, it contains provisions specifically designed to reduce the cost of housing, rent and real estate development. Read the statement below and watch a video of Amaechi speakingClarification for Lawyer Amaechi and others: 2025 c d not i 25% We are aware of a recent video claiming that the new tax laws will commence in 2027 and alleging the imposition of a 25% tax on funds for building materials and other transactions. Both claims are incorrect. 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. Instead, it contains provisions specifically designed to reduce the cost of housing, rent and real estate development. , 2025 Relevant provisions to make housing more affordable, encourage real estate development, and support small business property contractors and low-income renters include: 1. – (.185()): Land and buildings are now specifically exempt from Value Added Tax (VAT).- : Where VAT is chargeable on any materials or service, contractors can now recover VAT on their assets and overhead costs, which lowers overall construction costs.- (): A lower 2% WHT rate is applicable on construction contracts, helping to conserve cash flow and reduce financing pressure on developers.- (.30(2)()): Mortgage interest is tax-deductible for individuals developing an owner-occupied residential house.- (.20): Property owners who earn rental income can deduct related costs such as repairs, insurance, and agency fees. 2. – (.30(2)()): Individuals can claim relief up to 500,000 (20% of annual rent), increasing disposable income for low-income earners.- (.185()): The VAT exemption on land and buildings also covers rent which is fully exempt from Value Added Tax.- (.134): Lease agreements with an annual value below 10,000,000 (or 10 times the annual minimum wage) are exempt from stamp duty. 3. – (.51(1)): Individuals pay no Capital Gains Tax (CGT) when disposing of a dwelling house or an interest in one.- (.162()): Real Estate Investment Trusts (REITs) are exempt from Companies Income Tax (CIT) when distributing at least 75% of their dividend or rental income within 12 months after the financial year-end.- : Manufacturing of building materials such as iron, steel, and domestic appliances qualifies for specific tax exemption under the economic development incentive scheme for up to 10 years.- (.56): Scope for the reduction of companies income tax rate for large businesses from 30% to 25%. 4. – (.14(6)): The taxable value of employer-provided accommodation is limited to the annual rental value, subject to a maximum of 20% of the employee’s annual gross employment income, excluding the rental value.- : Suppliers and contractors who qualify as small companies benefit from 0% Companies Income Tax (CIT), exemption from charging VAT and no deduction of Withholding Tax (WHT) from their invoices and payments. 5. The Act does not:- Tax money in bank accounts or bank balances.- Tax transfers for buying building materials.- Introduce a 25% construction or business cost tax.- Delay implementation until 2027. : Claims that a new tax on building materials or bank funds is being proposed are false and misrepresent the law. Rather, the new tax law introduced measures to make housing more affordable, promote real estate development, incentivise the manufacture of building materials, and provide rent relief to tenants to enhance their disposable income. : Fact Not Fear, evidence beats emotion. If anyone makes an alarming claim or tries to misinform you, ask them, Where is it in the law? With the new tax laws, housing should become more affordable, and rent should go down, NOT up! ” View this post on Instagram A post shared by TIME.I.NG (@dotifidigital) The post With the new tax laws, house rent should go down, NOT up – Presidential tax force says as it counters Rotimi Amaechi’s claim that N25% will be deducted on funds paid for all building materials appeared first on Time.com.ng.