THE Lagos State Government has cancelled the 2018 Land Use Charge.
The state government has therefore reverted to the pre-2018 Land Use Charges.
This was disclosed by the Lagos State Commissioner for Finance, Dr. Rabiu Olowo, at a press briefing, organised by the Finance Ministry on Wednesday.
The commissioner revealed that the Government had also waived Land Use Charge penalties for 2017, 2018 and 2019.
This, he said, translated into a N5.6bn revenue loss.
Olowo said the Government arrived at the new Land Use Charge 2020 after a series of stakeholders meetings, adding that it was designed to accommodate the agitations of Lagosians and reduce the financial pressure on citizens as it relates to Land Use.
The new law reduces the penalties for defaulters from between 25 and 100 per cent to between 10 and 50 per cent; while there is also a 48 per cent reduction in the annual charge rates for different properties.
Another major sector that had its charge reduced is the Agricultural sector. Annual charge rate for Agricultural land was reduced from 0.076 per cent to 0.01 per cent. This represents a reduction of 87 per cent from the old rate.
The government also re-introduced the 15 per cent early payment discount, which had been increased by a 10 per cent special COVID-19 incentive. This makes the discount 25 per cent when payment is made before due date.
Pensioners under the new provisions now include retirees from private and public institutions in the state (or any person that has attained the age of sixty (60) years and has ceased to be actively engaged in any activity or business for remuneration) and their properties. Those in these categories are now exempted from paying Land Use Charge.
However, profit-oriented cemeteries and burial grounds, including private libraries, are no longer exempted from payment of Land Use Charge.
The Commissioer said, “We have completed the LUC Reform process and review of bills. Property owners should expect to receive their 2020 LUC bills shortly and we expect property owners to leverage on the 25 per cent early payment discount.
“Furthermore, the LUC payment can now be made Online via https://Lagos.ebsrcm.com Payment can also be made using USSD Code to any of our designated banks with the appropriate code.”
Recall that the increase in the Land Use Charge under the administration of former Governor Akinwunmi Ambode had generated widespread controversy and criticism.
