Residents are demanding reversal of the increase in land use charge, slammed on land/building owners by Lagos by administration of Governor Akinwunmi
Residents are demanding reversal of the increase in land use charge, slammed on land/building owners by Lagos by administration of Governor Akinwunmi Ambode. At the vanguard of opposition to the new rate are opposition political parties, residents of highbrow estates in Lagos, business and professional associations. The Organised Private Sector, OPS has already indicated that it will resist the review which it said has led to 200 percent increase in Land Use Charge. A political party, Action Democratic Party (ADP) for instance, described the increase in the land use charges by Ambode as obnoxious, while claiming that the new levy would geometrically increase the level of hardship residents of the state face. ADP also argued that the increase would lead to an upsurge in rents paid by Lagosians and subsequently render many homeless. However, Ambode disclosed that N13.2 billion was generated as LUC in 2017, adding that N284 billion was raked in as taxes also in 2017. But as more individuals and organizations continue to reject the upward review of taxes and rates like the land use charge, car registration fees and litigation fees in Lagos state, the Ikeja branch of NBA disclosed it would be embarking on a peaceful protest on Monday, March 12, 2018, to show its dissatisfaction.
Meanwhile, the state government has clarified the figures circulating in the media on the rate for the newly reviewed land use charge law of 2018, saying many of the numbers were based on several years of arrears on the levy not paid by affected property owners. Speaking at a news briefing held at the Bagauda Kaltho Press Centre in Alausa, Ikeja, the State’s Commissioner for Information and Strategy, Mr Kehinde Bamigbetan said there were so many misconceptions and misinformation about the new law, adding that the law was a progressive enactment duly made by the House of Assembly and handed over to the Executive for implementation in the overall interest of the people. He specifically dismissed the humongous figures being bandied about on the social media, saying many of the calculations were based on arrears of many years of non-payment.
“The fact is that this law took a long process to be made. It started as a bill and went through the first reading, second reading, public hearing to which all stakeholders were brought together to debate it and some of the relieves we have seen were part of the debate expressed by the stakeholders about the need to protect the vulnerable segment of the society. Having made the law, the Lagos State House of Assembly has handed it over to the executive to implement. The second important part is that a lot of relieves have been built into the law but many people are confusing arrears with the actual figure. If you see those figures, ask whether it is for one year or arrears of several years of non-payment.”
Also speaking, Commissioner for Finance, Mr Akinyemi Ashade said the government has extended the period for tax payers to enjoy the 15 per cent discount in the reviewed Land Use Charge Law to April 14, 2018 in order to enable the implementation and enforcement of the new law, as well as allow many property owners to benefit from the discount. Explaining the calculation of amount payable, the Commissioner said that property owners can determine the amount by multiplying the Market Value of their property by the Applicable Relief Rate of 40 per cent and Annual Charge rate.
“Upon receiving a notice or not, the new law has made it possible for owners to calculate their charge, and enable prompt payment, which allows them to benefit from a 15% discount for early payment, applicable to payments made within 15 days of receipt of Demand Notice,” he said.
Responding to fears of tenants that the new Law might force landlords to increase rent, Ashade said aside the fact that the Lagos State Tenancy Law 2011 was still in force, payment for Land Use Charge under the new law is on the Landlord and not the tenant. He said the minimum rate was only increased from N1,200 it was in 2001 to N5,000, while there is provision for self-assessment and Assessment Appeal Tribunal under the new law. On vacant properties, Ashade said such would be treated based on owner-occupier and not as a commercial property, explaining that the target of government is to make commercial property owners to pay a little bit more.
