Following sustained public criticisms of the provisions in the recently enacted Lagos Land Use Charge Law of 2018, the State Government has bowed to pressure, reducing the rates by 50% across all property categories in the state.
Other reliefs offered by the government are that owners of property across all categories will now be allowed to make payments by installments, to reduce the burden of taxation on citizens; and no penalties for late payments.
According to reports, the reduction was part of the resolutions reached at state’s Executive Council meeting held Thursday and presided over by the Governor, Akinwunmi Ambode.
The government also reduced charges for owner-occupier with third party — including industries and manufacturing concerns by 25 percent, and would clear up tax credits given for LUC charges.
The 50 per cent reduction means owners of commercial property (land) valued at N20m will now pay N45,600 LUC per year, instead of the heightened bill of N91,200. This also implies that land property occupied by owner and third party and property used for industrial and manufacturing purposes will now enjoy 25 percent discount.
Similarly, this also means that a N20m property expected to pay N30,720 will now pay N23,040 per annum. Owner-occupied property will enjoy 15 percent discount. So, for a N20m property, this used to be N9,120. Now, it is N7,752 per annum.
According to the government, 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, among others.
The reviewed LUC law for rates and reliefs, as categorized according to type of ownership and use, will be sent to the Lagos State House of Assembly for passage into law.
It would be recalled that the state government had, less than two weeks ago, increased the charges by 400 per cent in accordance with the new Land Use Charge Law.
The increase attracted opposition from the broad spectrum of the public, especially business owners and residents who questioned the rationale behind the 400% increase in the state’s land use charges.