The Governor Babajide Sanwo-Olu-Lagos State Government Wednesday reversed the rate of Land Use Charge to pre-2018 and upheld the 2018 method of valuation.
It would be recalled that former Lagos State governor, Akinwumi Ambode, had in 2018 introduced the controversial increase in Land Use Charge which generated uproar in the state.
Reversing the charge on Wednesday, the Sanwo-Olu administration explained that the decision for the review was to reduce the financial pressure on Lagosians relating to land use.
“In 2018, there was an increase in Land Use Charge rate as well as the method of valuation of properties, this 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,” Sanwo-Olu said, in a statement by his Commissioner for Finance, Rabiu Olowo.
With this development, the state government said penalties for Land Use Charge for Year 2017, 2018 and 2019 have also been waived.
“This translates to N5,752,168,411.03 potential revenue waived by the state.
In additional to the re- introduction of the 15 per cent early payment discount, an additional COVID-19 incentive of 10 per cent will be granted on the total amount payable. This makes the total discount for early payment 25 per cent if payment is made before due date.
“The penalty for obstruction of officials and damage to property identification plague has been reduced from N250,000 to N100,000.
“The penalty for inciting a person to refuse to pay LUC has been reduced from N250,000 to N100,000.
“The 2020 LUC Law introduced a 10 per cent and 20 per cent special relief for vacant properties and open empty land, respectively,” the statement added.