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Operators Urge The Government To Reduce Taxes In The Housing Sector.
Photo: Staff Photographer

OPERATORS URGE THE GOVERNMENT TO REDUCE TAXES IN THE HOUSING SECTOR.

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Bisi Adedire, the President of the Association of Town Planning Consultants of Nigeria, pointed out that the numerous taxes and levies on land from various ministries and government agencies are significant challenges for private sector operators in the construction industry.

 

Stakeholders in the housing sector have expressed concerns that the multiple taxes levied on the private sector are stifling the industry's growth.

 

During a two-day workshop in Ogun State, titled "The Impact of Emerging Technologies on Urban and Regional Planning: Challenges and Opportunities," he revealed this.

 

He explained, "While the levies are necessary to strengthen the government's ability to provide essential services for development, the burden negatively impacts property developers, particularly when they are required to pay everything upfront before construction even begins on their plots of land. The Federal Government should address this issue and implement a system that benefits all stakeholders."

 

Similarly, estate surveyor Olorunyomi Alatise stated that the numerous taxes in the housing sector were among the reasons people hesitate to regularize their landed property.

 

He said, “You just acquired a property, and you are trying to process your Certificate of Occupancy, but at the point of doing this, part of the things you need is a tax clearance, and tax clearance is evidence that you do not owe the state. 

Also, you will pay capital gains tax, the tenement rate, which has been harmonised into the land use charge, and other taxes. By the time they itemise the different taxes you are to pay, you find out that it is a lot for someone that just acquired a property.”

 

Oluwole Sotire, the Permanent Secretary of the Ministry of Physical Planning and Urban Development, Lagos State, discussed how planning regulations are beneficial to everyone. He lamented that citizens, including government officials, sometimes exploit weak points in government processes to cut corners and violate planning regulations.

 

He further added, “There is a case now even in Ogun State, just like a Certificate of Occupancy has been granted to a gentleman. They issued a C-of-O to one person for about 4.5 hectares of land at Otta. Before you know it, those we say are government officials at the land went ahead and cut part of it simply because the land has been lying fallow for a good number of years.

 

“They believe it may be that the person is dead. They cut about half of the 2.2 hectares and issued another C-of-O. The case is still on the ground. We wrote a letter to the ministry stating that this C-of-O has been issued for the past 15 years by the government, and it is the same government that has issued another one that cuts across that portion of the land.

 

“So, the fact that people know that I’m working on that site, they have to call to my attention that somebody has started constructing a fence around that place. We have submitted our letter to the government, the governor, the lands commissioner, and every other agency. Up till today, nothing has come out of it, and the guy(encroacher) is still developing that site. So, at times, the government can be a problem to society.”

 

Babatunde Adeyemo, the Chief Executive Officer of Pelican Valley, urged the government to adopt a more practical and realistic approach to land acquisition by consistently following due process.

 

He also emphasized the importance of providing the essential services and infrastructure needed to stimulate development in acquired areas, warning that development would remain unattainable in the estate until the proper measures are implemented.

 

 

"This represents a significant development in our ongoing coverage of current events."
— Editorial Board

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