Lagos State Government has reversed the Land Use Charge to pre-2018 while upholding the 2018 method of valuation.
Commissioner for Finance, Dr. Rabiu Olowo while briefing the press, said government has also waived penalties for those who defaulted in the payment of the land use charge in 2017, 2018 and 2019, which translates to a loss of revenue to the state amounting to N5.6 billion.
Olowo said the new Land Use Charge Law 2020 is a product of a series of stakeholders meetings and is 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 to 100 percent to 10 to 50 percent; there is also a 48 percent reduction in the annual charge rates for different properties.
His words: “Still on reductions, another major sector that had its charge reduced is the agricultural sector, whose annual charge rate for agricultural land was reduced from 0.076 percent to 0.01 percent. This is an 87 percent reduction from the old rate.”
Government re-introduced the 15 percent early payment discount which has been increased by a 10 percent special COVID-19 incentive making it 25 percent when payment is paid before due date.
The 2020 LUC Law also introduced a 10 percent and 20 percent special relief for vacant property and empty land respectively.
The commissioner noted that unlike in the 2018 law, pensioners now include retirees from private and public institutions in the state (or any person that has attained the age of 60 and has ceased to be actively engaged in any activity or business for remuneration) and their properties are exempted from paying land use charge.