The Lagos State government has revoked the 2018 land use charge implemented by the previous administration.
This was announced by Rabiu Olowo, the Lagos State Commissioner for Finance at a press briefing in Ikeja, the state capital, on Wednesday.
Olowo announced that the state government has reverted to pre-2018 land use charges.
According to the commissioner, the waived penalties for land use charge for years 2017, 2018 and 2019 translates to a loss of revenue amounting to N5.6 billion.
Olowo said: “We considered the Land Use Charge reform very necessary to accommodate the agitations of Lagosians and reduce the financial pressure on citizens as it relates to Land Use.
“As you are aware in 2018, there was an increase in Land Use Charge rate as well as the method of valuation of properties, this Twin shock had a sporadic increase in Land Use Charge payable by property owners.
“In view of the aforementioned, the current administration decided to review the Land Use Charge law by reversing the rate of Land Use Charge to pre-2018 while upholding the 2018 method of valuation.
“The reform also considered multiple Land Use Charge payment channels and efficient customer service management by setting up a call centre (0700 LAGOS LUC) in other to ensure prompt issue resolution.”
The Lagos State government under the administration of former governor Akinwunmi Ambode assented and began the implementation of new Land Use Charge Law on February 5, 2018.
Under the now-repealed law, the rate for an owner-solely-occupied residential property was fixed at 0.076 per cent of the chargeable value of the property as against 0.0394 per cent applicable under the Land Use Charge Law, 2001.
The rate for a residential property without the owner in residence or a commercial property was fixed at 0.76 per cent of the chargeable property as against 0.394 per cent under the 2001 law.
For an industrial property, the rate was pegged at 0.256 per cent of the chargeable value of the property as against 0.132 per cent under the 2001 law.