…Grants 50% Reduction on Commercial Charges, 25% For
Owner-Occupier, Manufacturing Concerns
… Gives Tax Credit for Payment Already Made, Introduces
Instalment Payment Plan
Following extensive deliberations with stakeholders on the new
rates payable by property owners under the Lagos State Land Use
Charge (LUC) Law, the State Government on Thursday announced a
major reduction in the rates and as well waived the penalty for
late payments across board.
The State’s Commissioner for Finance, Mr Akinyemi Ashade, who
disclosed this while addressing a press briefing at the Bagauda
Kaltho Press Centre in Alausa on the outcome of dialogue with
stakeholders, said the rates payable on commercial properties have
been reduced by 50 per cent in response to the demands of the
people.
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 LUC charges already paid in addition to introduction of
instalment payment system.
Ashade, who addressed the briefing alongside dozens of Executive
Council members and top government functionaries, said the decision
to reduce the rates was taken at the weekly Council Meeting held on
Wednesday and Chaired by the State Governor, Mr Akinwunmi
Ambode.
He said: “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.”
Giving a breakdown of the reduction, Ashade said 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.
On 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.
He added: “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 added that in a bid to create a framework to empower property
owners with self-assessment, the executive would forward a
regulation to the House of Assembly for review of applicable rates
and regime of reliefs on categories of properties pursuant to LUC
Law.
While appreciating stakeholders for trusting the current
administration with the responsibility of investing the revenue
from LUC in infrastructure renewal and overall development of the
State, Ashade urged them to endeavor to participate effectively in
the legislative proceedings going forward.
Besides, the Commissioner said the reduction would be
implemented immediately as there were provisions within the LUC law
which empowered the government to carry out necessary adjustment to
cushion the effect of implementation.
Also, Attorney General and Commissioner for Justice, Mr. Adeniji
Kazeem said under the amended law, there is provision for
establishment of five tribunals out of which one has been created
in Ikeja and now operational, while the remaining four would be
established in other administrative divisions of the State in Epe,
Badagry, Ikorodu and Lagos Island.
He said the law also makes provision for aggrieved tax payers to
ventilate their grievances within forty-five days through a
mediation process, adding that so far over 80 cases have been
resolved through mediation.
…Grants 50% Reduction on Commercial Charges, 25% For
Owner-Occupier, Manufacturing Concerns
… Gives Tax Credit for Payment Already Made, Introduces
Instalment Payment Plan
Following extensive deliberations with stakeholders on the new
rates payable by property owners under the Lagos State Land Use
Charge (LUC) Law, the State Government on Thursday announced a
major reduction in the rates and as well waived the penalty for
late payments across board.
The State’s Commissioner for Finance, Mr Akinyemi Ashade, who
disclosed this while addressing a press briefing at the Bagauda
Kaltho Press Centre in Alausa on the outcome of dialogue with
stakeholders, said the rates payable on commercial properties have
been reduced by 50 per cent in response to the demands of the
people.
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 LUC charges already paid in addition to introduction of
instalment payment system.
Ashade, who addressed the briefing alongside dozens of Executive
Council members and top government functionaries, said the decision
to reduce the rates was taken at the weekly Council Meeting held on
Wednesday and Chaired by the State Governor, Mr Akinwunmi
Ambode.
He said: “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.”
Giving a breakdown of the reduction, Ashade said 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.
On 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.
He added: “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 added that in a bid to create a framework to empower property
owners with self-assessment, the executive would forward a
regulation to the House of Assembly for review of applicable rates
and regime of reliefs on categories of properties pursuant to LUC
Law.
While appreciating stakeholders for trusting the current
administration with the responsibility of investing the revenue
from LUC in infrastructure renewal and overall development of the
State, Ashade urged them to endeavor to participate effectively in
the legislative proceedings going forward.
Besides, the Commissioner said the reduction would be
implemented immediately as there were provisions within the LUC law
which empowered the government to carry out necessary adjustment to
cushion the effect of implementation.
Also, Attorney General and Commissioner for Justice, Mr. Adeniji
Kazeem said under the amended law, there is provision for
establishment of five tribunals out of which one has been created
in Ikeja and now operational, while the remaining four would be
established in other administrative divisions of the State in Epe,
Badagry, Ikorodu and Lagos Island.
He said the law also makes provision for aggrieved tax payers to
ventilate their grievances within forty-five days through a
mediation process, adding that so far over 80 cases have been
resolved through mediation.