Lagos state government has cancelled 2018 Land Use Charge (LUC) and has reverted to pre-2018 LUC.
The state Commissioner for Finance, Rabiu Olowo, announced this at a press conference in Alausa, Ikeja on Wednesday, August 5.
The government has also waived penalties for those who defaulted in payment of land use charge for the years 2017, 2018 and 2019, which according to the commissioner translates to a loss of revenue to the state amounting to N5.6b.
Olowo said the reformed 2018 Land Use Charge Law which uploads the 2018 method of valuation is a product of series of stakeholders meetings.
He stated that it 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 per cent to 10 to 50 per cent; there is also a 48 per cent reduction in the annual charge rates for different properties.
Olowo stressed;
Still on reductions, another major sector that had its charge reduced is Agricultural sector, which annual charge rate for Agricultural land was reduced from 0.076% to 0.01%. This is an 87% reduction from the old rate.
The state government further re-introduced 25 per cent early payment discount as special COVID-19 incentive for those who make payment before due date.
However, profit oriented cemeteries, burial grounds and private libraries are no longer exempted from payment of Land Use Charge.
Olowo stressed;
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% early payment discount.
The LUC was increased via a law under the administration of Akinwunmi Ambode and it generated a lot of heat among residents with widespread protest in rejecting of the increase.
