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Lagos State Government has cancelled the 2018 land use charge and reverted to pre-2018 land use charges.
The Government announced this at an ongoing press briefing by Commissioner for Finance, Dr. Rabiu Olowo.
The government also waived penalties for land use charge for 2017, 2018 and 2019, which according to the Commissioner translates to a loss of revenue amounting to N5.6bn. (details soon)
What it means?
Land Use Charge law (2018) was renowned for its effect – hike in tax rates and a shift in property valuation methods.
Land Use Charge law (2018) law doubled most tax rates on different forms of property, with the rate for residential owner-occupiers increasing from 0.0394% to 0.076%, for industrial properties (and residential properties occupied by owners and third parties) rising from 0.132% to 0.256%, and the rate for both commercial and ‘third party only’ residential properties rising from 0.394% to 0.76%.
This continues to reflect a commitment to keeping tax rates low for owner-occupiers and charging the highest rates for revenue-generating commercial activities.
