Land Use Charge: 400% increment based on arrears, says Lagos Government

Lagos State government has said that the purported 400 percent increase to the Land Use Charge is not only erroneous but misleading,saying the calculations were based on arrears.

Making clarifications regarding the amended Land Use Charge,Lagos State Commissioner for Finance, Akinyemi Ashade, stressed that the government was not unaware of the reactions of a section of the public on the reviewed Land Use Charge of 2001.

He,however, said the government increased the charge to improve the revenue accruing to the state government.

“In order to improve on service delivery, increase internally Generated Revenue (IGR), and not depend on the federal revenue, Lagos state has sought to grow its revenue base by ensuring all economic activities on Real Estate gives a return to the government.

“The implemented Land Use Charge Law (LUCL), is a repeal of the Land Use Charge Law 2001, it was reviewed by the Lagos State House of Assembly and signed into Law by the Lagos State Governor, Mr. Akinwunmi Ambode on February 8,” he said.

Also responding, Lagos Commissioner for Information and Strategy, Kehinde Bamigbetan, said there were so many misconceptions and misinformation about the new law, adding that the law was a progressive enactment duly made by the House of Assembly.

“The fact is that this law took a long process to be made. It started as a bill and went through the first reading, second reading, public hearing to which all stakeholders were brought together to debate it and some of the relieves we have seen were part of the debate.

“A lot of relieves have been built into the law but many people are confusing arrears with the actual figure. If you see those figures, ask whether if it is for one year or arrears of several years of non-payment,” Bamigbetan said.

Ashade added that the government had extended the period for tax payers to enjoy the 15 per cent discount in the reviewed Land Use Charge Law to April 14, 2018, in order to allow many property owners to benefit from the discount.