A presidential tax reform panel has dismissed claims that Nigeria’s new tax laws will drive up housing costs, insisting instead that rents should decrease once the reforms take effect. The response follows comments by Rotimi Amaechi, who alleged that a 25 percent deduction would be imposed on funds used to purchase building materials. According to the panel, such claims misrepresent the intention and structure of the new tax framework.

Officials explained that the reforms are designed to simplify taxation, reduce multiple levies, and ease financial pressure on businesses, including those in the construction sector. By lowering the overall tax burden and eliminating overlapping charges, authorities say developers should spend less on compliance and production, which could translate into lower housing costs for residents.

The committee emphasized that no policy has been introduced to deduct a flat percentage from funds used to buy construction materials. Instead, it stated that the reforms aim to encourage investment and stimulate growth in key sectors. Analysts note that housing prices are influenced by several factors, including inflation, exchange rates, and supply shortages, not taxation alone.

The disagreement highlights ongoing debates surrounding fiscal policy in Nigeria, where economic reforms often trigger public scrutiny and political reactions. Observers say clearer communication from authorities will be essential to ensure citizens and investors fully understand how the new tax system works and what it truly means for living costs.