The Lagos State Government has announced a reduction in the Land Use Charge to be paid by property owners in the state.
The announcement was made on Thursday following consultations with different stakeholders.
Addressing a press conference on the issue, the Lagos State Commissioner for Finance, Mr. Akinyemi Ashade, said the review was in line with the desire of government to build infrastructure and improve the well-being of its citizens.
The charges on properties, he said, had been slashed in in the different categories.
He said while Commercial Property had been granted 50% discount, Property Occupied by Owner and Third Party & Property Used for Industrial and Manufacturing Purposes had been granted 25% discount and Owner-occupied Property enjoyed 15% discount.
His words: “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 and 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.”
He however said that those who had already paid the new LUC would be awarded tax credits to the extent of the excess amount paid and carried forward to the following year.
He said that a regulation would be sent to the Lagos State House of Assembly for review and passage, and urged stakeholders to participate in the legislative proceedings.
It would be recalled that lawyers and human rights activists on Tuesday took to the streets to protest the new tax regime introduced by the government recently.
They insisted that they would take the Governor Akinwunmi Ambode’s-led administration to court if the protests refused to change anything.
READ ALSO: Lagos new tax regime: Protesters vow to go to court
Very pronounced among the taxes is the one on property in the state.
Following the introduction of the taxes, some lawyers and rights activists gave the government a seven day period to reverse the increment.
However as at Tuesday, the order remained, hence the decision to take to the streets in protest.
Different banners and placards were displayed expressing the protesters’ opposition to the new tax regime.
Prominent among the protesters is the Chairman of the Nigerian Bar Association, Ikeja Branch, Adesina Ogunlana.
He pointed out that the new tax regime was capable of causing hyperinflation, insecurity, hunger and increased criminal activities.
He insisted that the government would be made to reverse the increase in the taxes.
According to him, they would not go for any negotiation but insist on reversal.
His words: “If the governor refuses to stop and reverse all tax increments after our protest, we will go to court.
“The law court is part of our struggle. We are here for one purpose; to fight against our oppressor. We know our condition of life, sweating everyday, having problems with food, accommodation and they are here asking us to pay taxes, taxes and more taxes.
“I know of a school given N5 million for borehole permit. Are the parents of the students not in trouble?
“Ambode’s tax is illegal, toxic, satanic and we are not going to accept it. We voted for him and now he wants to vote us out of Lagos.”
The protest took them from the NBA secretariat at the Ikeja Magistrate Court to the Lagos State House of Assembly.