By Adedapo Adesanya
The Lagos State Government under the Mr Babajide Sanwo-Olu administration has reversed the higher land use charge rate imposed by the previous administration of Mr Akinwunmi Ambode on properties owners in 2018.
This was disclosed by Mr Rabiu Olowo, the Lagos State Commissioner for Finance, at the 2020 ministerial briefing to mark the first year anniversary of the Mr Sanwo-Olu led government.
He said the present administration was working to reduce the rate to the previous levels so as to make life less cumbersome to residents of the metropolis.
“As we are aware, in 2018, there was an increase in LUC rate and at the same time, a revaluation of property; this twin-shock had a sporadic increase in LUC assessment.
“The soon to be revealed reform will among other things, reverse the rate to pre-2018 rate,” the Commissioner said.
According to him, “The reform also considered a flexible land use charge payments and efficient customer service management in other to ensure prompt issue resolution.”
Mr Akinwumi Ambode, who was governor of the state from 2015 to 2019, had announced a review of land use charge in 2018 and this increased the charge on a property solely occupied by the owner for a residential purpose to 0.076 percent per annum from 0.0394 percent.
The rate for an investment property fully occupied by tenants or third party(ies) was also increased from 0.394 percent per annum to 0.076 percent.
But due to complaints, the rate for commercial properties was later reduced by 50 percent and 25 percent for owner-occupiers.
Mr Olowo said the government hopes to keep economic activities going in the state without causing problems that will complicate the financial hardship caused by the COVID-19 pandemic.
Also speaking further, the Commissioner said that in the last one year in the area of revenue optimization, an electronic tax payment platform has been deployed for tax operations and administration matters, automation of operations of Lagos Lottery Board.
He also said F.O.R.C.E (Focus On Revenue Creation Everywhere), have been instituted to monitor, review and drive innovative revenue performance whilst providing revenue assurance.
He explained that the state has been able to restructure all its existing internal loan facilities previously at the rate of 18 percent – 20 percent to 14 percent, explaining that this has increased cash flows, adding that the state achieved 106 percent performance in the first-quarter revenue as against the state’s 2020 budget.
Modupe Gbadeyanka