Multiple taxation threat to real estate – Surveyors’ chair

July 30th, 2018

Chairman of the Royal Institution of Chartered Surveyors (RICS), Mr Olayinka Omotosho, on Monday identified multiple taxation as the biggest impediment to the growth of the real estate industry in the country.
Omotosho in an interview in Lagos said that real estate investors were subjected to multiple taxation, which hindered their effective operation.
According to him, the high construction cost, expensive house rents and services in the industry are as a result of multiple taxes paid by developers and investors.
He enumerated the taxes and levies paid by operators in the industry to include development levy, income tax, building plan approval levy, property tax, land use charge and tax, among others.
He said there were also cases whereby real estate investors were expected to pay renovation tax whenever they want to renovate their properties.
“Taxation is a source of government revenue to fund public expenditures, no doubt, but it should not be exploitative and exorbitant.
“The government needs to look into the tax system and streamline it to make it more reasonable, fair and affordable.
“And to encourage both the local and foreign investors into Industry, the taxes need not to be too much on them,” Omotosho said.
The RICS chairman lamented that the nation’s taxation system was full of loopholes that had rendered it ineffective and unable to achieve set objectives. (NAN)

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