LAND USE CHARGE: REAL ESTATE SECTOR STAKEHOLDERS HAIL 50% REDUCTION BY LSG
Posted on March 19, 2018 || By: Global News
Institution of Estate Surveyors and Valuers (NIESV), on Thursday, March
16, 2018, in Lagos hailed Governor Ambode’s gesture in slashing the new
Land Use Charge for Commercial properties by 50%. At a stakeholders
meeting held at The Protea Hotels, GRA, Ikeja, Lagos, Mr. Orimalade
described the Ambode led government as a listening government and
pledged his association’s support for the new law and all other
progressive decisions of the government going forward. In his words, “we
are committed to working with the present Lagos State administration to
make the new law succeed and we have already set up a technical
committee to come up in ten days, with directions, recommendations and
position of the Institution on the law in order to collaborate with the
government for a better society.
Arc. Ifeoma George, Vice President Nigeria Institute of Architects, said
at the meeting that “this is a listening government and propose that
stakeholders should continue to be carried along in all government
dealings, going forward “. The event was a meeting with professionals in
the real estate sector.
The commissioner for Finance, Lagos State, Mr. Akinyemi Ashade, took the
opportunity to further enumerate other reliefs entailed in the amended
Land Use Charge Law. He emphasized that the state government was opened
to further discussions on how to solve the challenges plaguing
infrastructural financing and investments in Lagos State. He also
mentioned that there will be no penalty for late payment in this 2018
regime as earlier stipulated. Furthermore, the amended Land Use Charge
Law is a property tax that consolidates the tenement rate, Neighbourhood
Improvement rate, and Ground rent.
Outside of the commercial properties, properties occupied by owners and
third party used for commercial purposes will get a further 25%
discount, while a wholly owner-occupied property will get an additional
15% discount as graciously pronounced by the government. In addition to
these, all the other reliefs enumerated at the inception of the amended
law remains valid. These include 40% general relief across board,
meaning that whatever is the value of the property, 40% will be deducted
and the charge will only be calculated on the remaining 60%. For elder
citizens above 70years old, there is an additional 10% discount. For
those living with any form of disability, there is also 10% discount
while properties that are 25 years old and above will also enjoy another
10% discount. Above all, payments can be staggered across the year to
soothe the economic convenience of the payer.
The Commissioner also emphasized that self-assessment of property will
be encouraged to help individuals calculate their charges appropriately.
They are allowed to use their independent Estate Valuers to assess their
property and bring such discrepancies up to the government for
reconciliation. The state government according to Mr. Ashade, the
Commissioner for Finance, is opened to discussions and ever willing and
ready to dialogue on the Land Use Charge Law or any other government
policy for that matter.
Everyone present at the meeting agreed and fully appreciated the
unparalleled efforts of the state government in turning around the
infrastructural fortunes of the state. They pledged their loyalty and
support to the government’s efforts towards the Lagos Mega City Drive.
To buttress this point, members of the Estate Agents Association
present, pledged to partner with the state government in advising the
landlords to speedily pay Land Use Charge.
The stakeholders meeting had in attendance professional associations and
bodies like Nigeria Institution of Estate Surveyors and Valuers (NIESV),
Faculty of Estate Agency and Auctioneering, International Real Estate
Federation, Nigerian Institute of Architects, Association of Builders &
Property Developers, and Association of Town Planners and Estate Agents