Ambode bows to pressure, reduces Land Use Charge.


This should be good news for property owners in Lagos as the Lagos state government on Thursday announced a reduction in the Land Use rates and also forgo the penalty for late payments.
Our source gathered that the decision to reduce the rates was taken at the weekly council meeting, Chaired by the state governor.which was held on Wednesday.
With the presence of some executive members and some Executive Council members and top government functionaries at the briefing, the commissioner for Finance, Mr Akinyemi Ashade, while addressing a press briefing at the Bagauda Kaltho Press Centre in Alausa on the outcome of dialogue with stakeholders, said the tax rates on commercial properties have been reduced by 50 per cent in response to the demands of the people.
According to commissioner,“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.”
“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. 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.
“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,” Ashade said.
He said the government has also reduced the charges for owner-occupier with third party including industries and manufacturing concerns by 25 per cent, while tax credits has been given for Land Use Charge, LUC, charges already paid in addition to introduction of installment payment system.
While expatiating further, the commissioner of finance, Mr Akinyemi Ashade breakdown of the reduction; for commercial property owners who were mostly affected by the amended law, a property valued at N20million for instance which was earlier billed N91,200 will now pay N45,600 per annum as a result of the 50 per cent discount, while property occupied by owner, third party and property used for industrial and manufacturing purposes will now pay N23,040 per annum on a property valued at N20million as against the earlier N30,720 based on the 25 per cent discount.for owner-occupied property, the Commissioner explained that for a property valued at N20million, only N7,752 will now be paid per annum as against N9,120 earlier demanded based on 15 per cent discount.

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