Rising Rents are not Caused by Taxation -Enugu Government
The Enugu State Internal Revenue Service (ESIRS) has strongly refuted claims that rising house rents in the state are a direct result of government taxation policies. In a recent press briefing, the Chairman of the ESIRS, Emmanuel Nnamani, stated that the issue is a nationwide problem driven by the fundamental economic principles of supply and demand, not fiscal policy.
Nnamani dismissed allegations of arbitrary taxation, clarifying that all taxes and levies collected by the state are strictly within the confines of the law, guided by the Personal Income Tax Act. He emphasized that the government has not increased tax rates. Instead, the focus has been on improving transparency and efficiency by widening the tax net to include the informal sector and plugging revenue leakages.
According to the ESIRS chairman, the primary reason for the high cost of rent is a significant housing deficit. The city’s population is growing, but the supply of rental properties has not kept pace. He pointed out a trend where developers are increasingly opting to build private, gated residences rather than mass housing or rental apartments. This shift has reduced the overall housing stock available for rent, leading to increased competition and higher prices.
Another contributing factor is the high cost of construction materials. Nnamani noted that many building materials, such as granite and steel, are sourced from other states. The simultaneous undertaking of multiple major infrastructure projects in Enugu, including smart schools and health centers, has temporarily inflated the demand for these materials, and these costs are ultimately reflected in the rent prices.
While the government has stated it cannot directly regulate rent prices, it is taking steps to address the root causes of the problem. A new law has been signed to establish a one-stop-shop for tax collection, which aims to eliminate multiple taxation and streamline the process. The ESIRS has also launched a tax calculator on its website to help residents understand their obligations and foster trust.
To combat the housing deficit, the Enugu State Housing Development Corporation (ESHDC) is embarking on new residential estates. Plans are underway to construct mass housing and student hostels near institutions like ESUT and IMT, which would free up existing housing in the city center and help stabilize rents. These efforts are complemented by a federal government-backed 10,000-unit housing project in Enugu, which is part of a broader national initiative to bridge the housing gap.
