IMPLICATIONS OF TAX REFORMS AND THE HARMONIZATION LAW ON REAL ESTATE DEVELOPMENT IN NASARAWA STATE

Abstract

Tax reforms have become central instruments for strengthening fiscal capacity, reducing revenue leakages, and promoting sustainable development at the sub-national levels in Nigeria. In Nasarawa State, the enactment of the Harmonization and Administration of Revenue Law (2020) and its Amendment (2023) marked a significant shift in property taxation and revenue administration. Hence, this study examined the implications of these reforms on property taxation and real estate development. A qualitative research design was adopted, employing semi-structured interviews with Estate Surveyors, Real Estate Developers, Revenue Officials, Landlords, and Community Representatives. Thematic analysis was used to identify key perspectives and stakeholder opinions. The findings revealed that the reforms introduced major changes, including the centralization of property tax collection, digitization of revenue processes, and expansion of taxable items. These measures enhanced transparency, improved investor confidence, and reduced incidences of multiple taxation. However, the reform also increased compliance costs and administrative burdens for developers and landlords. Thus, while some developers welcomed the predictability of taxation, others considered that probable higher levies may discourage new investments, especially in low and middle-income housing. Consequently, the research noted some gaps in taxpayer sensitization, administrative efficiency, and institutional coordination. The study thus concludes that while the reform enhanced fiscal efficiency; they have significant implications on real estate development. The study therefore recommended targeted tax incentives for affordable housing, stronger sensitization, reinvestment of revenues into urban infrastructure, and capacity-building for the Nasarawa State Internal Revenue Service. Importantly, the Nigerian Institution of Estate Surveyors and Valuers (NIESV) should be formally incorporated into the implementation framework to ensure fairness in property valuation and promote sustainable real estate development.