Lagos reduces Land Use charge rates, waives penalty for late payment

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Lagos Governor, Akinwunmi Ambode

…Grants 50% reduction on commercial charges, 25% for owner- occupier, Manufacturing Concerns

… Gives Tax Credit for Payment Already Made, Introduces Instalment Payment Plan

In line with the administration’s tradition of inclusive governance and  civic engagement, the Lagos State Government on Thursday, March 15  announced the downward review of the amended Land Use Charge Law 2018 to  50% for commercial property as well as other LUC waivers that will give  economic succour to owners of property and taxpayers in Lagos State.

PICTURE: LASG media briefing on reduction of land use charge rates at Bagauda Kaltho Press Centre, Alausa, Ikeja. Commissioner for Finance, Mr. Akinyemi Ashade (middle); his counterparts for Information and Strategy, Mr. Kehinde Bamigbetan (2nd right); Waterfront Infrastructure Development, Dr. Samuel Adejare (right); Attorney General & Commissioner for Justice, Mr. Adeniji Kazeem (2nd left) and Special Adviser to the Lagos State Governor on Lagos Global, Prof. Ademola Abass (left) during a media briefing on the reduction of the Land Use Charge at the Bagauda Kaltho Press Centre, the Secretariat, Alausa, Ikeja, on Thursday, March 15, 2018.

This announcement was made by the Lagos State Commissioner for Finance,  Mr. Akinyemi Ashade during a Press Conference held at the Baguda Kaltho  Press Centre, Alausa, Ikeja, Lagos attended by members of the media in  the state and other relevant stakeholders.

Mr. Ashade stated that the review to the amended LUC Law 2018 which was  received with mixed feelings in the state came as a result of widespread  dialogue with stakeholders such as the Organised Private Sector, Nigeria  Bar Association, Real Estate Investors & Developers, Landlord & Resident  Associations, Community Development Associations, Civil Society

Organizations, Lagos Chamber of Commerce and Industries (LCCI), Nigeria  Institute of Estate Surveyors & Valuers and several other professional  groups.

“As a Government that is committed to the welfare of its citizens and  which understands the importance of continuously engaging the populace,  the Lagos State Government took this important decision for the good of  the people”.

The after effect of the review of the amended LUC law means owners of  property in Lagos State can now reap the benefits and waivers as  follows:

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.

PROPERTY OCCUPIED BY OWNER AND THIRD PARTY & PROPERTY USED FOR INDUSTRIAL AND MANUFACTURING PURPOSES will now enjoy 25% discount. This means that a N20 million property expected to pay N30,720 will now pay  N23,040 per annum.

OWNER-OCCUPIED PROPERTY will enjoy 15% discount. For a N20 million  property, this used to be N9,120. Now, it is N7,752 per annum.

Additionally, the penalty regime for late payment of LUC has been waived  completely. Therefore, LUC payers who have received their bills will no  longer be penalized for late payment of bills issued in 2018, thereby  providing additional relief to LUC payers.

Apart from the earlier stated ones, other rates and reliefs 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. 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 Lagos  citizens.

The Executive Director of Centre for Public Accountability (CPA),  Comrade Femi Lawson who was elated at the new LUC review praised the  administration of Governor Akinwunmi Ambode for its empathy with the  people of the state. “This review shows a government that shares in the

pain and concerns of the citizens of this state. Not only did they  listen to our agitations but also LASG took action to allay our fears  and worries by bringing the LUC rates down and, introducing some other  tax burden relief measures. This is surely a pro-people government.”

L-R: Commissioner for Finance, Mr. Akinyemi Ashade (2nd right); his counterpart for Information and Strategy, Mr. Kehinde Bamigbetan (right); Attorney General & Commissioner for Justice, Mr. Adeniji Kazeem (2nd left) and Special Adviser to the Lagos State
Governor on Lagos Global, Prof. Ademola Abass (left) during the media briefing on the reduction of the Land Use Charge at the Bagauda Kaltho Press Centre, the Secretariat, Alausa, Ikeja, on Thursday, March 15, 2018.

Similarly, Mr. Thomas Aderinola, a real estate investor in Lagos State,  said the downward review of the amended LUC law by as much as 50% was a  reassuring indication that the LASG is a listening government. “Imagine  this huge waiver of 50%. It shows that the state government is sensitive  to needs and is working for the interest of the people. We all can see  what Governor Ambode is doing in the state in terms of Infrastructural  development.”

More importantly, Aderinola applauded the government for introducing  some other waivers like instalmental payment and the newly set up  People’s Tribunal to resolve LUC payment cases in the state. “With  developments like these, we will be happy to show our commitment to thegrowth of Lagos by paying our taxes as at when due”

Furthermore, the Commissioner of Finance appreciated and commended   property owners of all categories who have been performing 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”.

The Government also thanked Lagosians for their support and trust while  encouraging them to participate effectively in the legislative  proceedings.

“We appreciate you for trusting the current administration with the  responsibility of investing the revenue from LUC in infrastructure  renewal and overall development of our State. We promise we will  continue to make your tax work for you”.

 

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