Expert Seeks Tax Relief For Mortgage Institutions

Worried by the difficulties intending estate developers face in securing finance for property development, a housing and property expert, Segun Abdul, has urged the government to exempt primary mortgage institutions (PMIs) from the payment of tax.

Also, he said that the tax system and the tax law should be amended to ensure that beneficiaries pay the tax, instead of the PMIs, noting that this would go along way to encourage mortgage institution in their quest to finance development.

Abdul, who was speaking in a chat with The Tide in Port Harcourt on the state of housing availability, especially in Port Harcourt, noted that while the demand for house is in geometric progression, the supply of it is growing in arithmetic progression, stressing that many factors have contributed to the situation for which finance plans the key factor.

The property expert who is the chief executive officer (CEO), Prime Trust Associates, a property development outfit and a member of the Nigerian Institute of Estate Surveyors and Valuers (NIESV) also advocated for the establishment of construction development bank that will also provide credit facilities at low interest rate for development of housing.

He said the Nigerian construction development bank when in place should be made to hold promise for the mortgage sector and the public, adding that this will create stability and re-assurance in the mortgage system, and low interest will be changed and people will have assess to funds to purchase houses.

According to him “These mortgage institutions would be able to provide low interest credit facilities for people who want to purchase house under the Nigeria construction Bank arrangement and this can guarantee multiplier effect on the construction and housing effect”.

Abdul while advocating for the change in the tax system for mortgage, however, urged government to also review the land use act, pointing out that the problem associated with land ownership and title documentation have posed problem in housing development.      

Corlins Walter