The Lagos State government has announced a downward review of the amended Land Use Charge (LUC) Law 2018, a policy that had set it on collision course with a cross section the residents.
It crashed the rate by 50% for commercial property as well as other LUC waivers.
The announcement was made by the Commissioner for Finance, Mr. Akinyemi Ashade, during a press conference held at the Baguda Kaltho Press Centre, Alausa, Ikeja, Lagos, which was attended by relevant stakeholders.
According to the commissioner, the review arose from extensive dialogue with relevant stakeholders including 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 other professional groups.
Asahde said: “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 import of the review is that owners of property in Lagos State can now reap the benefits and waivers as follows:
Commercial property owners are granted 50% discount. Thus, a commercial property valued at N20 million and previously billed N91, 200 will now pay N45,600 per annum.
Property occupied by owner and third party and property used for industrial and manufacturing purposes are granted 25% discount. Similarly, a N20 million property initially billed N30,720 will now pay N23,040 per annum.
Owner-occupier property is granted 15% discount, translating to N7,752 per annum, from the previous N9,120 for a property valued at N20 million.
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, the government said.
The government also announced that 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 are also allowed to make payments by installments.
The Executive Director of Centre for Public Accountability (CPA), Mr. Femi Lawson, praised Governor Akinwunmi Ambode for the review, saying: “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.”
Similarly, a real estate investor, Mr. Thomas Aderinola , said the downward review of the amended LUC law by as much as 50% is a reassuring indication that the government is a listening one.