The Lagos Government has reversed the Land Use Charge (LUC) rates to pre-2018, in response to the agitations by Lagosians against exorbitant charges.
Commissioner for Finance, Dr. Rabiu Olowo, who revealed this on Wednesday during a press briefing held at the Bagauda Kaltho Press Centre, Alausa Ikeja, also disclosed that the penalties for 2017, 2018 and 2019 have been waived which translates to over N5 billion potential revenue relinquished by the State Government.
He also stated that multiple payment channels for the collection of the LUC have also been created by the Ministry to further ease the mode of payment including the use of online channels.
Olowo said that the downward review and reforms of the Land Use Charge (LUC) shows that Governor Babajide Sanwo-Olu is concerned about ameliorating the financial pressure on Lagosians, especially during this pandemic.
“In 2018, there was an increase in the Land Use Charge rate as well as the method of valuation of property; this twin shock had a sporadic increase in Land Use Charge payable by property owners.
“However, the present administration decided to review the Land Use Charge (LUC) law by reversing the rate of Land Use Charge to pre-2018 while upholding the 2018 method of valuation”, he said.
“Some of the new reforms introduced include: exemption of property owned and occupied by a pensioner from paying LUC, reduction in the percentage increase in penalties for defaults in paying LUC in the following categories: 45-75 days from 25% to 10%, 75-105 days from 50% to 20% and 105-135 days from 100% to 50%”, he stated.
He added that the right of enforcement has been reduced from notification of three default notices to two, but that profit-oriented libraries, cemeteries and burial grounds are no longer exempted from payment of Land Use Charge, among several other reforms.
Olowo further explained that an additional 10% COVID-19 incentive as well as a 15% early payment discount has been introduced to increase the total discount for early payment to 25% before the due date while he urged all property owners in the State to leverage on the discount and pay their LUC bills which will soon be distributed.