The Lagos State Government on Thursday announced a reduction in the rates payable by property owners under the Lagos State Land Use Charge Law 2018, and waived the penalty for late payment.
The Commissioner for Finance, Mr. Akinyemi Ashade, who stated this at a press briefing in Alausa, Ikeja, said the development followed extensive deliberations with stakeholders.
He said, “The rates payable on commercial properties have been reduced by 50 per cent. The government has also reduced the charges for owner-occupier with third party by 25 per cent, while tax credit has been given for LUC charges already paid in addition to introduction of instalment payment system.”
Ashade, who addressed journalists along with Executive Council members, said the decision to reduce the rates was taken at the council meeting on Wednesday, which was chaired by Governor Akinwunmi Ambode.
Giving a breakdown of the reduction, Ashade said for commercial property owners, a property valued at N20m for instance, which was earlier billed N91,200, would 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 N20m as against the earlier N30,720 based on the 25 per cent discount.
“On owner-occupied property valued at N20m, only N7,752 will now be paid per annum as against N9,120 earlier demanded based on 15 per cent discount.
“Other rates and reliefs, apart from the ones stated above, will remain unchanged. These include 40 per cent general relief, 10 per cent for 70 years and above, 10 per cent for properties owned by persons living with disabilities and 10 per cent for properties that are 25 years old. Owners of properties across all categories will now be allowed to make payments by instalments,” Ashade added.
Also, Attorney General and Commissioner for Justice, Mr. Adeniji Kazeem, said under the amended law, there was provision for establishment of five tribunals, out of which one had become operational in Ikeja.
He said the remaining four would be established in Epe, Badagry, Ikorodu and on Lagos Island.