Cut commercial charges by 50 percent, manufacturing concerns by 25 percent, waives penalty for late payment across board, introducing instalmental payment
Lagos State Government on Thursday announced the reduction of Land Use Charge across board. In a press briefing at the Baguda Kaltho press center Commissioner for Finance, Akinyemi Ashade, said the Lagos State Government has reduced commercial charges by 50 percent, manufacturing concerns by 25 percent,waives penalty for late payment across board, gives tax credits for Land Use Charges already paid and introducing of instalmental payment
According to Akinyemi Ashade ‘ 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. ‘
Commissioner of Finance in the press briefing said the state government have received a wide range of responses from 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.
These various interactions formed the subject of extensive deliberations at the meeting of the Lagos State Executive Council on Wednesday, March 14th, 2018 where the Lagos State Executive Council chaired by His Excellency, Mr. Akinwunmi Ambode, therefore resolved the Land Use Charge.
Commercial Property owners, who are undoubtedly mostly impacted by this amended Law will now 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: 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. 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.
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 according to the Lagos State Government ,will help reduce the burden of taxation on our citizens.