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Finally Lagos State Reduces Land Use Charge

Lagos State Reduces Land Use Charge

Finally Lagos State Reduces Land Use Charge

The Lagos State government in a tweet posted on it’s official Twitter handle has announced a reduction in it’s recently amended Land Use Charges.

 

The increase was as much as 500% in some cases. The state government had justified steep increase as due to the non revision of the law in over a decade and the need to increase revenue.

 

Obviously the insensitive increase might probably would have cost the ruling party the gubernatorial seat come 2019 in the state.

 

Read more: Why You Should Buy A Land From BuyLekkiNowNow

 

Governor Akinwunmi Ambode had earlier hinted at the willingness of the state government to modify the charges. He made this known during a parley with business leaders in the state.

 

More details about the reduced Land use charge

• Cut commercial charges by 50%,
• Reduces charges for Owner-occupier with 3rd party including industries and manufacturing concerns by 25%
• Waives Penalty for Late Payments across board
• Gives tax credits for LUC charges already paid
• Introduces Instalmental Payment System
Protocols
The Lagos State Government, in its desire to build world class infrastructure and improve the well-being of its citizens reviewed the Land Use Charges payable by all property owners. This exercise was received with mixed feelings by various interest groups who expressed serious concerns.
In line with this administration’s tradition of inclusive governance and civic engagement, and as a Government that is committed to the welfare of its citizens and understands the importance of continuously engaging the populace, we undertook extensive dialogue with various stakeholders on the Land Use Charge (“LUC”) revised Law and its implementation.
Consequently, we received a wide range of responses from our dialogue with various stakeholders on the amended LUC Law 2018. The stakeholders included the Organised Private Sector, Nigeria Bar Association, Real estate investors & developers, Landlord & Resident Associations, Community Development Associations, Civil Society Organisations, Lagos Chamber of Commerce and Industries (LCCI), Nigeria Institute of Estate Surveyors & Valuers and several other professional groups.
These various interactions formed the subject of extensive deliberations at the meeting of the Lagos State Executive Council on Wednesday, March 14th, 2018. The Lagos State Executive Council chaired by His Excellency, Mr. Akinwunmi Ambode, therefore resolved as follows:
1. Commercial Property: Commercial Property owners, who are undoubtedly the stakeholders mostly impacted by this amended Law will be granted 50% discount. This means a commercial property valued at N20 million which was earlier billed N91,200 will now pay N45,600 per annum.
2. Property Occupied by Owner and Third Party & Property Used for Industrial and Manufacturing Purposes: These categories of property will now enjoy 25% discount. This means that a N20 million property expected to pay N30,720 will now pay N23,040 per annum.
3. Owner-occupied Property: This category of property will enjoy 15% discount. For a N20 million property, this used to be N9,120. Now, it is N7,752 per annum.
4. The penalty regime for late payment of LUC has been waived completely. Therefore, LUC payers who have received their bills will no longer be penalised for late payment of bills issued in 2018, thereby providing additional relief to LUC payers.
5. Other rates and reliefs, apart from the ones stated above, will remain unchanged and will be implemented as stipulated by the Law. These include 40% general relief, 10% for 70 years and above, 10% for properties owned by persons living with disability and 10% for properties that are 25 years old and so on and so forth.
6. Owners of Property across all categories will now be allowed to make payments by instalments. This will help to reduce the burden of taxation on our citizens.
7. We appreciate and commend property owners of all categories who have performed their civic duties faithfully by paying the LUC. Consequently, as a result of these new measures, those who have paid the original amount will be awarded tax credits to the extent of the excess amount paid and carried forward to next year.

It is our fervent desire to ensure that we empower every property owner with the self-assessment provisions of the law. Therefore, we shall forward to the Lagos State House of Assembly for review and passage the following regulations:
a) The Regulation for review of applicable rates and regime of reliefs on Categories of Properties pursuant to LUC Law.
b) The Regulation for a framework for self-assessment

 

Main while The Nigerian Bar Association (NBA), Ikeja Branch, has rejected the 50 per cent reduction of the Land Use Charge recently reviewed by the Lagos State Government.

The Chairman, Mr Adeshina Ogunlana, told the News Agency of Nigeria (NAN) on Thursday said that the reduction by the Gov. Akinwunmi Ambode led-administration is “unacceptable”.

“I am yet to hear officially from the  government about that reduction or see a document about it,  I have only seen news flash which I will treat only as a rumour.

“The rumoured reduction is not acceptable, I don’t trust this government; this is democracy and if there is going to be a reduction you have to consult with the people.

“The reduction is arbitrary and lacks legal basis. Due process must be followed, the law must be repealed and amended.

“You cannot repeal a law by proclamation, we are not in the military era where laws are made by decrees and proclamation,” he said.

On the association’s next line of action, Ogunlana said: “The NBA Ikeja branch will hold a press briefing to address this issue.

 

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