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Lagos State government on Thursday shifted its position, owing to pressure from Lagosians, on the vexed issue of amended Land Use Charge Law.
In a press briefing at the Bagauda Kaltho Press Centre, Ikeja, attended by top state executives, Commissioner for Finance, AkinyemiAshade, said the reverse in the position of the state government was occasioned by the fact that governor Akinwunmi Ambode had a “listening ear and is a man who’s sensitive to the plight and yearnings of the people.”
In the review, commercial charges have been cut by 50 percent and there is a reduction of charges for owner-occupier with third party, including industries and manufacturing concerns by 25 percent.
Also, the state government waived the penalty for late payments across board and tax credits would equally be given for Land Use Charges already paid, just as there is now the introduction of installment payment system in the new arrangement.
“The Lagos State Executive Council, chaired by His Excellency, Mr. Akinwunmi Ambode, therefore resolved as follows: Commercial Property owners, who are undoubtedly the stakeholders mostly impacted by this amended Law will be granted 50 percent discount. This means a commercial property valued at N20 million which was earlier billed N91,200 will now pay N45,600 per annum.
“Secondly, property occupied by owner and third party and property used for Industrial and manufacturing purposes: These categories of property will now enjoy 25 percent discount. This means that a N20 million property expected to pay N30,720 will now pay N23,040 per annum.
“Thirdly, owner-occupied property: This category of property will enjoy 15 percent discount. For a N20 million property, this used to be N9,120. Now, it is N7,752 per annum.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,” A shade said.
He added that 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 percent general relief, 10 percent for 70 years and above, 10 percent for properties owned by persons living with disability and 10 percent for properties that are 25 years old.
“We implore all stakeholders to participate effectively in the legislative proceedings and sincerely appreciate them for trusting the current administration with the responsibility of investing the revenue from LUC in infrastructure renewal and overall development of our state. We will continue to make your tax work for you,” he said.
