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Tag: Land Use Charge

  • Lagos explains Land Use Charge payment

    Lagos explains Land Use Charge payment

    …Discounted payment extended till April 14

     

    The Lagos State Government on Wednesday clarified the figures circulating in the media on the rate for the newly reviewed Land Use Charge Law of 2018, saying many of the numbers were based on several years of arrears on the levy not paid by affected property owners.

    Speaking at a news briefing held at the Bagauda Kaltho Press Centre in Alausa, Ikeja, the State’s Commissioner for Information and Strategy, Mr Kehinde Bamigbetan said there were so many misconceptions and misinformation about the new law, adding that the law was a progressive enactment duly made by the House of Assembly and handed over to the Executive for implementation in the overall interest of the people.

    He specifically dismissed the humongous figures being bandied about on the social media, saying many of the calculations were based on arrears of many years of non-payment.

    “The fact is that this law took a long process to be made. It started as a bill and went through the first reading, second reading, public hearing to which all stakeholders were brought together to debate it and some of the relieves we have seen were part of the debate expressed by the stakeholders about the need to protect the vulnerable segment of the society. Having made the law, the Lagos State House of Assembly has handed it over to the executive to implement.

    “The second important part is that a lot of relieves have been built into the law but many people are confusing arrears with the actual figure. If you see those figures, ask whether it is for one year or arrears of several years of non-payment. The humongous figures that are being bandied around particularly in the social media relate to the arrears of many years of non-payment which are computed together,” Bamigbetan said.

    Also speaking, Commissioner for Finance, Mr Akinyemi Ashade said the government has extended the period for tax payers to enjoy the 15 per cent discount in the reviewed Land Use Charge Law to April 14, 2018 in order to enable the implementation and enforcement of the new law, as well as allow many property owners to benefit from the discount.

    Ashade, who took time to clarify reactions in some section of the public on the new law, said under the old law, which had not been reviewed for over 15 years since 2001, the Land Use Charge rate was totally inaccurate and retrogressive and was depriving the State of keeping track of all economic activities that relate to land in Lagos State.

    He said the Law, which was reviewed by the Lagos State House of Assembly and signed into Law by the State Governor, Mr. Akinwunmi Ambode on February 8, 2018 is a merger of all Property and Land Based Rates and Charges in the State.

    Ashade said: “There was an urgent need for the repeal, as the old law had not been reviewed for over 15 years, since 2001. Under the old law, the LUC rate was totally inaccurate and retrogressive which deprived the State of keeping track of all economic activities that relate to land in Lagos State.

    “The new law is a consolidation of Ground Rent, Tenement Rate, and Neighbourhood Improvement Levy. This charge is payable annually in respect of all real estate properties in the State, which means owners and occupiers holding a lease to a Property for ten (10) years or more are now liable to pay the annual LUC invoice charged.

    “Thus, the Tenement Rates Law, the Land Based Rates Law, the Neighbourhood Improvement Charge and all other similar Property Rates or Charges, Laws or amendments to any such property Laws shall cease to apply to any property in Lagos State as from 2018.  Nonetheless, all pending invoices, orders, rules, regulations, etc. under the 2001 repealed Law shall continue to be in effect until such obligations are discharged.”

    Explaining the calculation of amount payable, the Commissioner said that property owners can determine the amount by multiplying the Market Value of their property by the Applicable Relief Rate of 40 per cent and Annual Charge rate.

    “Upon receiving a notice or not, the new law has made it possible for owners to calculate their charge, and enable prompt payment, which allows them to benefit from a 15% discount for early payment, applicable to payments made within 15 days of receipt of Demand Notice,” he said.

    Responding to fears of tenants that the new Law might force landlords to increase rent, Ashade said aside the fact that the Lagos State Tenancy Law 2011 was still in force, payment for Land Use Charge under the new law is on the Landlord and not the tenant.

    He said the minimum rate was only increased from N1,200 it was in 2001 to N5,000, while there is provision for self-assessment and Assessment Appeal Tribunal under the new law.

    On vacant properties, Ashade said such would be treated based on owner-occupier and not as a commercial property, explaining that the target of government is to make commercial property owners to pay a little bit more.

    Read Also: Ambode on Land Use Charge: we’re ready for dialogue

  • Ambode on Land Use Charge: we’re ready for dialogue

    Ambode on Land Use Charge: we’re ready for dialogue

    INUNDATED with complaints from property owners over the revised Lagos State Land Use Charge (LUC) Act, Governor Akinwunmi Ambode yesterday explained what informed    the review. He said his doors were opened for dialogue.

    According to him, the government is not oblivious of the outcry against the law. His administration, he said, was not out to overburden property owners.

    Ambode was speaking at a parley with business executives under the auspices of the organised private sector (OPS). He said the decision to review the law more than a decade after its enactment was in the overriding interest of the future of Lagos as a mega city.

    At the parley tagged: “Lagos means business”, were captains of industry including: one-time Cross River State Governor Donald Duke; First City Monument Bank (FCMB) Group founder Otunba Subomi Balogun; Premier Lotto Limited Chairman Chief Kessington Adebutu; Eleganza Group of Companies Chairman Alhaji Rasak Okoya and Zenith Bank Chairman Jim Ovia.

    Others are: Deputy Governor Mrs. Oluranti Adebule; United Bank for Africa (UBA) Chiarmen Tony Elumelu; Honeywell Group Chairman Oba Otudeko; former Industry Minister and immediate-past Lagos Chamber of Commerce & Industry (LCCI) Mrs. Nike Akande; Channels Television Chairman John Momoh; Pivot Companies Limited Managing Director Kehinde Bolodeoku; members of the diplomatic corps, top business executives and high net-worth property owners, among others.

    The governor explained that the Law, enacted in 2001, provides for an upward review every five years, but that the government did not review it until last year, adding that the review was in line with the present economic realities.

    Ambode said: “The law was made in 2001. It provides that every five years, we should review it and also find a way to increase. Fifteen years after (up until 2017), the law has never been reviewed. Now, the question is this; those who are having commercial properties, the rental income they were getting in 2002 as against the rental income they are getting in 2017, is it the same?

    “The level of infrastructure that existed in 2002, as against what has happened in the last 15 years, is it the same? Did it not come at a cost? So, why is the market value of the property that you built with N1 million naira, 15 years after, you are selling at N20 million. Why do you think somebody who is a buyer will pay N20 million for it? Is it not because of the facilities around the property? So, we have to sacrifice; that is how it works everywhere.

    “So, somebody comes and say, we have increased by 400 per cent. The question is, the 400 per cent of what? You were paying N10, 000 before, now we say you should pay N50, 000 and you are calculating and turning statistics upside down by saying it is 400 per cent.”

    He went further to explain that while the revised LUC Law requires owner-occupiers to pay just 0.076 per cent, pensioners, churches, mosques, non-governmental organisations and government institutions are exempted from payment.

    His words: “So, who is the one that will take care of the ones that are free? If you are owner-occupier, you don’t need to pay. So, it’s the commercial part that people are complaining about.

    “Why have we increased the rate? We should have been doing this every five years but I am looking at it if I must sustain the level of my vision, I have to give something back to the people.

    “I don’t have to come and meet you if I continue to borrow money, but we are borrowing to punish you ultimately which is not what we want because it is even the taxes you pay that would pay the interest and the principal. Somebody needs to tell us the bitter truth for us to sacrifice together and that is what we have done.”

    Reeling out statistics to explain the challenges that would confront the state in the nearest future, the governor said Lagos has been projected to become the third largest consumer market in the world with a population of 35.8 million, closely behind Tokyo in Japan and Delhi in India.

    It is expected that the population growth and rapid urbanisation would overstretch existing infrastructure and put public services under pressure.

    Ambode said the state requires a minimum of $50 billion over the next five years to bridge the gap of infrastructural deficit, even as he proposed a special infrastructure fund to be driven by the OPS to address social challenges as the way to go.

    “Assuming the entire budget for 2018 is spent only on infrastructure development, Lagos will be left with a deficit of about N14.47 trillion and also require an additional 19 years of similar expenditure to bridge the infrastructure deficit”, Ambode said.

    The governor expressed concerns that only about two million out of the eight million taxable adults in the state have filed their tax returns. Only 700,000 actually paid their taxes last year, Ambode said.

    “We are 24 million; taxable adults in Lagos are eight million. The number of people that actually submitted tax returns in 2017 is two million and then only 700, 000 people paid their taxes,” he said.

    Zenith Bank Chairman Jim Ovia speaking at the event ...yesterday PHOTOS: MOSEHIN MOSES
    Zenith Bank Chairman Jim Ovia speaking at the event …yesterday
    PHOTOS: MOSEHIN MOSES

    Ambode said the current tax returns were not enough to cater for the ongoing capital projects across the state, adding that major cities across the world with thriving economies are sustained by the taxes paid by residents.

    Thanking the business community for their support over the years, Ambode renewed his administration’s commitment to the creation of an enabling environment for businesses to thrive, adding that concerted efforts have been made to aid the expansion of their businesses in the state.

    This, he noted, would have multiplying effects on the state’s economy.

    “I invite you to come and own the economy. Whatever you say here would be taken seriously because this gathering is not just about knowledge sharing; it’s more about the future of Nigeria and not just Lagos,” the governor said.

    In his remarks, Alhaji Dangote commended the governor for deeming it fit to organise a forum to meet the business community in the Centre of Excellence, describing it as a demonstration of Ambode’s passion to take Lagos to the next level.

    He also said the economic drive by the government was one that required all and sundry to rally round the government and perform their civic responsibility of paying their taxes as and at when due.

    The Dangote Group President said: “I am more convinced now and I think people should really be voluntarily paying taxes in Lagos. I think for the people who are doing business here, Lagos is the most-friendly states in Nigeria. If you really want to know, try other states and you will see…

    “I am not advertising for Lagos but there is not a single time you go with a problem and the governor will ask you to go and come back tomorrow because in most cases, he will call everybody and say let us sit down and sort out the issues. So, your Excellency, we congratulate you and assure that we will continue to support you.”

    Banks’ executives Ovia and Elumelu lauded the governor for the massive infrastructural renewal projects across the state especially in the area of security.

    Ovia, said that business owners now feel safe to invest in the state owing to the investment in security, just as he commended the governor for sustaining the Lagos State Security Trust Fund (LSSTF), a public-private partnership designed to enhance local security.

    “Your Excellency, you have spoken today like a Chairman/CEO of a company to his shareholders. We are definitely one of your shareholders and we would renew your mandate in 2019 there’s no doubt”, Ovia said.

    The duo promised to increase their donation to the LSSTF and called on others to contribute their quota to the enhancement of the state’s security architecture.

  • LCCI holds forum to renegotiate concerns in Lagos Land Use Charge

    LCCI holds forum to renegotiate concerns in Lagos Land Use Charge

    The Lagos Chamber of Commerce and Industry ( LCCI ), is set to hold a dialogue session that will renegotiate grey areas in the new Land Use Charge Law of Lagos State.

    This was disclosed in a statement signed by Mr Muda Yusuf, Director-General of LCCI on Friday in Lagos.

    Yusuf said that the session, scheduled for March 9, would examine the provisions of the recently-passed law viz-a-viz its implications for residents and businesses operating in Lagos State and its environs.

    “In continuance of its Public Policy Advocacy Initiative, it behoves the LCCI to provide a platform, such as this, to aggregate the views of stakeholders (both public and private) on the new Land Use Charge Law in Lagos, which has generated heated debates in the public space.

    “This platform will enable stakeholders in Real Estate, Construction and other related sectors to engage the Lagos State Government on the recently-passed Law and re-negotiate its grey areas,” he said.

    Yusuf added that seasoned Professionals, Leaders of Businesses in the Private Sector and top Public Sector Officials would be available to dialogue with participants at the event.

    Lagos State Government recently repealed its 2001 Land Use Charge Law, and replaced it with a new Land Use Charge Law, 2018.

    The State House of Assembly had passed the bill on Jan. 29, while the Governor signed the bill into law on Feb. 8.

    Based on this law, new rates were sent to residents and those that have received their bills claim that the land use charge was an increase of between 150 and 300 per cent over the 2017 rates.

    NAN

  • Economics of land use charge

    Certainly, the recent bill on Land Use Charge passed into law by Governor Akinwunmi Ambode last Monday, is bound to change the equation as far as land management is concerned.

    It would be recalled that in 2001, the Lagos State government consolidated all property and land-based rates and charges previously applicable under Land Rates, Tenement Rates and Neighbourhood Improvement Charge into a single rate.  Thus, the Land Use Charge as prescribed by the Land Use Charge Law, No 11 of 2001 applicable to landed properties in Lagos State commenced on June 22, 2001.

    This was done with the dual aim of simplifying the payment of property tax and generating additional revenue for the state through efficient enforcement.

    However, the land use charge of 2001 was not effective in Lagos State as only a few residents were aware of it and even fewer complied with the provisions. A member of the Lagos State House of Assembly (LSHA), Hon. Gbolahan Yishawu, was reported to have lamented in December 2017 that only about 300,000 out of an estimated two million eligible properties pay their land use charge.

    It was no surprise, therefore, that the LSHA on January 16, 2018 organised a public hearing to intimate the citizens of Lagos on the rationale and details of a new bill to repeal the land use charge law 2001. It was an interactive session during which the House also received inputs from stakeholders from across commercial businesses, religious organisations, NGOs, real estate professionals, and the media, among others.

    The land use charge is now based on the commercial value of a property and valuation will be assessed by professional estate valuers appointed by the state. Valuation will also now be updated every five years. This will bring more fairness to the annual charge rate as a property owner in Ikorodu, for instance, will pay a markedly lower charge than a property owner in Ikoyi where property values are much higher. It also effectively removes any obsolescence in previous charges that were based on outdated valuations, some dating as far back as 2001. Fairness is also further entrenched in the new law with the establishment of an assessment appeal tribunal where people may appeal the decision that their property is chargeable or any perceived overvaluation of their assets.

    The scope has also been expanded as the elements of property was broadened to include a building; any improvement on land; a parcel of land, whether or not reclaimed, waterlogged or otherwise; a wharf or pier; and leaseholds of up to ten years. Thus, even that which is commonly called “a bare land” will now be charged an annual rate. This is partly designed to encourage the owners to develop such property.

    The bill provides a delineation of properties exempted from payment. Such properties like registered educational institutions and public or private libraries are now only exempted once they are certified by the commissioner to be non-profit making. Property owned and occupied by a religious body will be exempt if used exclusively as a place of worship or religious education. If used otherwise, they become chargeable. Other exemptions include public cemeteries and burial grounds, all palaces of recognised Obas and Chiefs, and any property specifically exempted by the executive governor of Lagos State. Properties occupied by non-profit making organizations may get only partial relief and not complete exemptions

    The law also makes provision for self-billing and electronic payment of the land use charge by owners. This is an indication that the government is employing technology to make compliance much easier.

    To further ease the burden on citizens as well as incentivize prompt payments, reliefs have been included in the bill. Lagos State retirees will get 100% relief (no charge) while factors like the age of a property owner, any physical challenges (or disability), and duration of residency may confer some partial relief. Prompt payments will confer some relief as well.

    In line with its pledge to carry stakeholders along, the government has kicked off an awareness campaign through multiple communication and media channels to enlighten the populace on the imperative of taxation. In the mix include the print media, television and radio; the internet and social media as well as engagement with key influencers in the state.  In this way, citizens will become fully aware of the details of the new land use charge, understand their obligations and act accordingly. The government is also publicizing the process of paying the new land use charge.

    To achieve its ultimate goal, enforcement of the law must be vigorous. The incentives and reliefs embedded in the law clearly shows that government intends to employ moral suasion. A successful enlightenment campaign will undoubtedly make enforcement much seamless. When citizens better understand the necessity of the charge and their roles in the scheme of things, it’s easier to get their buy in. Enforcement should be strict nonetheless and will require courteous displays of discipline, diligence and consistency on the part of the agencies of government that will pursue compliance to the provisions of the law.

    Enforcement of the policy by government also left a lot to be desired. Land owners continued to receive charges such as ground rent and tenement rate which were consolidated in the land use charge. This was coupled with the poor state of information on property ownership resulting in difficulties in administering charges to owners of properties.

    The Lagos State government with its declared aspiration to become a megacity as well as grow the state’s economy to become Africa’s third largest faces a monumental task of creating an environment that can trigger the level of productivity required for this growth and development. However, it is a task the government has set itself to accomplish.

    To its credit, the Lagos State government under Governor Akinwunmi Ambode has since its inception taken on the Lagos infrastructure burden headlong. Notable improvements and projects on Lagos infrastructure include street lighting and construction of lay bys across the state; the Jubilee Bridge that has decongested traffic around the Ajah axis; the reconstruction of the roundabouts on Lekki-Epe Expressway; the AbuleEgba Bridge; the Pen Cinema Bridge; contracts already concluded for the fourth mainland bridge and light rail construction projects; the expansion/reconstruction of International Airport Road currently underway.

    According to Governor Ambode, Lagos State requires funds in the region of $50 billion to fund its infrastructure gap. The source of revenue remains the monthly allocations from the federation account, capital receipts and Internally Generated Revenue.

    The steady growth in the population of Lagos (currently estimated at some 24m), the decline in the funds allocated from the federation and expanding infrastructure gap constrains the government to fashion creative ways to fund its developmental needs. This translates essentially to finding ways to improve IGR which should not however impose a heavy burden on the citizens. The Land Use Charge law is a welcome step in this direction, a win-win situation for all. Everyone looks forward to a Lagos that works for its entire people.

    • Akanni writes from Lagos

  • Lagos Assembly set to review Land Use charge law

    The Lagos State House of Assembly has reviewed the state’s  Land Use Charge.

    The House, last week, read for the second time a “Bill for A Law To Repeal The Land Use Charge Law 2001 and Enact Land Use Charge 2017 and For Connected Purposes”.

    The Assembly committed the bill to the House Ad hoc Committee on Finance, headed by Mr Yinka Ogundimu.

    According to the Speaker, Mr. Mudashiru Obasa, the proposed law is all about increasing the revenue generation of the state by bringing more houses into the net. Obasa said a situation where only a few consultants were working with the state government on the collection of Land Use Charge was discouraging.

    The Speaker, who noted that  many buildings had yet to be captured in the tax net of the state, said there was need for more consultants.

    “We need more consultants to do the job, so that the entire state can be covered in the collection of Land Use Charge.

    “Whatever tribunal that would be set up to deal with offenders should have the support of the government.

    “On the issue of exemptions, we cannot exempt religious organisations because most of the worship centres are making money.

    “We could only exempt non-governmental organisations; however, let’s leave all in the hand of the committee,” he said.

    Also, the House Majority Leader, Mr. Sanai Agunbiade, said  the bill would repeal the laws on land use charge.

    The House Deputy Speaker, Mr Wasiu Eshinlokun-Sanni, who commended the bill, said it would help to increase the revenue of the state government.

    The Chairman, Adhoc Committee on Budget and Economic Planning, Mr Gbolahan Yishawu, harped on theenforcement of collecting the charges.

    He decried the situation, where only about 300,000 houses were paying land use charge in a state with over two million houses.

     

  • Collect Land Use Charge on income, surveyors urge Lagos

    Collect Land Use Charge on income, surveyors urge Lagos

    THE Nigeria Institution of Estate Surveyors and Valuers (NIESV) has asked the Lagos State government to stop charging Land Use Charge on capital gains but on income.

    The association said even in charging income, some incomes are allowable. The institution said these errors have gone unchecked because its members are not involved in the administration of landed matters in the state.

    The group noted that since Lagos has remained a pacesetter in all sectors of the economy, it should correct itself so that the practice will be replicated in other states of the country.

    At a meeting with the Permanent Secretary, Land Bureau, Mr. Bode Agoro, the group’s   Chairman, Mr.  Offiong Sam Ukpong in the company of other executives of the body, stressed the need for the government to partner estate surveyors in on land administration.

    He said the nation’s land administration will continue to be in parlous state except there is policy direction in the right place.

    While calling for the establishment of the Office of Estate Surveyor–General, Ukpong said smaller countries such as Papa New Guinea and Ghana have come up with such policy that has seen the real sector grow in leaps and bounds.

    He said in Ghana, before a land transaction can be effectively concluded, a surveyor must sign to give legality to the transaction, lamenting that in Nigeria, surveyors are not involved in policy formulations and transactions. Furthermore he said his association should be allocated 100 hectares of land to build an estate that will exclusively be inhabited by surveyors to showcase professionalism in land matters and facility management of  buildings, plant and machinery.

    Agoro agreed that Land Use Charge should be on income and not on capital gain, promising that the government would review it soon. He promised to engage more surveyors, stressing that the state government is not unmindful of the strategic importance that estate surveyors and valuers occupy in any modern economy.

    He said in developed economies, the growth of the economy is measured by the robustness of the real estate sector and the state government is poised to benchmark on international best practices. He added that the state government plans to register  land and estate brokers, noting that government needs to identify those doing business with her in order to protect the public.

    The PS decried a situation where the innocent public is defrauded by those who purportedly act as interface between them and the government and stressed the preparedness of government to deal with any bad egg in her system and any member of the public who engages in fraudulent activities.

    He said: “If anybody or group henceforth wants to transact business with government relating to land, the person must submit himself to registration; we intend to curb the permissive illegalities we noted in the Bureau when we came in. We need to, as a matter of urgency, register all land and estate brokers so that when there is a dispute or misdemeanor we will readily know the culprit. As responsible government we owe it to every Lagosian to protect their lives and property.”

    According to him, government is working tirelessly to reposition the Bureau to meet modern demands of professionalism in landed matters and real estate business.

    On the proposed Surveyors Estate, he said the government will fulfil its promise by making land available for them to build the model estate but was non committal on the size of the land that will be given by government for the purpose.

  • Collect Land Use Charge on income, Surveyors urge Lagos

    THE Nigeria Institution of Estate Surveyors and Valuers (NIESV) has asked the Lagos State government to stop charging Land Use Charge on capital gains but on income.

    The association said even in charging income, some incomes are allowable. The institution said these errors have gone unchecked because its members are not involved in the administration of landed matters in the state.

    The group noted that since Lagos has remained a pacesetter in all sectors of the economy, it should correct itself so that the practice will be replicated in other states of the country.

    At a meeting with the Permanent Secretary, Land Bureau, Mr. Bode Agoro, the group’s   Chairman, Mr.  Offiong Sam Ukpong in the company of other executives of the body, stressed the need for the government to partner estate surveyors in on land administration.

    He said the nation’s land administration will continue to be in parlous state except there is policy direction in the right place.

    While calling for the establishment of the Office of Estate Surveyor–General, Ukpong said smaller countries such as Papa New Guinea and Ghana have come up with such policy that has seen the real sector grow in leaps and bounds.

    He said in Ghana, before a land transaction can be effectively concluded, a surveyor must sign to give legality to the transaction, lamenting that in Nigeria, surveyors are not involved in policy formulations and transactions. Furthermore he said his association should be allocated 100 hectares of land to build an estate that will exclusively be inhabited by surveyors to showcase professionalism in land matters and facility management of  buildings, plant and machinery.

    Agoro agreed that Land Use Charge should be on income and not on capital gain, promising that the government would review it soon. He promised to engage more surveyors, stressing that the state government is not unmindful of the strategic importance that estate surveyors and valuers occupy in any modern economy.

    He said in developed economies, the growth of the economy is measured by the robustness of the real estate sector and the state government is poised to benchmark on international best practices. He added that the state government plans to register  land and estate brokers, noting that government needs to identify those doing business with her in order to protect the public.

     

    The PS decried a situation where the innocent public is defrauded by those who purportedly act as interface between them and the government and stressed the preparedness of government to deal with any bad egg in her system and any member of the public who engages in fraudulent activities.

    He said: “If anybody or group henceforth wants to transact business with government relating to land, the person must submit himself to registration; we intend to curb the permissive illegalities we noted in the Bureau when we came in. We need to, as a matter of urgency, register all land and estate brokers so that when there is a dispute or misdemeanor we will readily know the culprit. As responsible government we owe it to every Lagosian to protect their lives and property.”

    According to him, government is working tirelessly to reposition the Bureau to meet modern demands of professionalism in landed matters and real estate business.

    On the proposed Surveyors Estate, he said the government will fulfil its promise by making land available for them to build the model estate but was non committal on the size of the land that will be given by government for the purpose.

  • Osun to improve IGR through land use charge

    Osun to improve IGR through land use charge

    The Osun State House of Assembly yesterday organised a public hearing on Land Use Charge Bill which is targeted at improving the Internally Generated Revenue of the state.

    Speaking at the event witnessed by the Deputy Governor Grace Titi Laoye-Tomori, the Chief of Staff to the governor, Gboyega Oyetola, the Speaker, Najeem Salaam, said the bill will ensure that payment of all property and land-based rates in the state is enforced.

    Also in attendance were traditional rulers, including the Akirun of Ikirun, the Ataoja of Osogbo, the Aragbiji of Iragbiji, the Olobu of Ilobu, the Oloyan of Oyan, the Elerin of Erin-Osun, among others.

    According to Salaam, the bill would also address charges payable under the land rate law, the neighbourhood improvement charge law as well as tenement rates law.

    The Speaker said the bill had undergone second reading “if passed it would improve the state’s revenue of the state, especially now that government is going the whole hog to boost the state’s revenue”. Salaam lamented that the revenue presently accruable to the state was not enough for developmental projects.

     

  • Land Use Charge not to victimise anyone, says Oshiomhole

    Land Use Charge not to victimise anyone, says Oshiomhole

    The Edo State Land Use Charge Law 2012 is not targeted at punishing the rich or poor, Governor Adams Oshiomhole has said.

    Addressing reporters after signing the law in Benin City, the Edo State capital, the governor said: “We will enforce the rule of law because no one is above the law. Government must continuously protect the weak and provide for them by taking from the rich to help the poor. This government will not victimise anybody. Tax laws are compulsory levies and not something you voluntarily buy into. No law is made at the convenience for anyone. That is why law is a leveller for all categories of persons. I have the trust of Edo people and I will not betray that trust.”

    If the rich must protect their investments and riches, he further said, they must pay their taxes and other levies that would help the government to provide the essential services that would make their investment safe.

    The law, according to him, is targeted at anyone who owns a house that occupies more than 100 by 100 square metres.

    “We understand that everybody uses land, but the amount of it that we use differs. That is why the law is targeted at the propertied class in order to help our poor population of people who are in the rural areas and urban slums. In places where you have family houses, rural settlers, the law will not apply to them. If you are like me, who has a modern structure or building, you will have to pay tax, because my house occupies more than 100m by 100m square metres”.

    He said the aim was to encourage those who use more land to pay for the government so that the government can cater for the greater population of our people who are predominantly poor, adding: “This is a pro-development law. I have seen and listened to commentators who have not read the law but are already condemning it. That is not the way to go about it.”

    He warned that anybody who flouts the law would be prosecuted. It is a criminal offence for you to evade taxes, the governor warned.

    He explained that the law provides for a consolidated approach to collection of levies and taxes or charges but has a proviso of exemption of certain categories of persons. For example, Section 9 subsections 1(a-i) specify clearly those who are exempted from the property tax. Such as properties owned and occupied by religious bodies, approved exclusively for religious worship or any other non-profit making religious education are exempted; ditto for public cemeteries, burial grounds, public libraries, palaces, and any other property exempted by the Governor through notice published in the State Government Official Gazette.

    Others exempted, he stated, are owner occupier residential property, which is 100metre by 100metre maximum in a non-choice area of an urban area, 100 metre by 100metre in a non-choice area in a rural setting, community property solely for community meetings, activities and events; owner occupier pensioner property and owner occupier of over 60 years old; and the last but not the least, family compound.

    He stressed that the exercise of the governor’s discretion over exemption would be guided by the reports of the assessors of any property to ensure that the right status is ascertained before any tax is imposed on it.

    The law, the Governor, said provides for a Tax Assessment Review Tribunal, which shall be set up pursuant to Section 46 of the Administrative Structure Law of Edo State.

    He said the Tribunal will have powers to summon any one to examine him, and require answers to any question, which it may deem fit to put concerning an appeal before it; and administer oaths and affirmations as well as enforce the production of all books and documents which it may consider necessary.

    Special Adviser to the Governor on Media and Public Affairs Prince Kassim Afegbua said the law is not what cynics are saying about it.

    According to him, the Governor means well for the people of the state because he wants to execute several development initiatives, which will have direct impact on the people.

    Rather than raise dust over the law where none exists, Afegbua counselled that the Governor should be applauded for coming up with a law that is on the side of the poor and vulnerable who are in greater number against the rich that have continued to be greatest exploiter of the goods and services of government.

    “If we must help the poor which is the motivation of the Governor, we must take from the rich and propertied class to bridge the gap of inequalities. Nobody is saying you cannot live in a choice building or an architectural derring-do, but you must be ready to pay the tax due for such a property. You can choose to build an archipelago and live to your comfort, but something has to go into government’s coffer who is the provider of the basic amenities, so that those amenities could remain running for the good of all”.

    Explaining why the law has to take effect immediately, Prince Afegbua stated that given the fact that revenue accruable to the state is on the decline, the governor had to look inwards to see how to generate legitimate revenue using appropriate legislation to do so.

    He added that it is such measures that have helped the state to attain its height. “You see, the government is not a popularity contest. It is a platform where the collective aspirations of the people are aggregated in a manner that the government sets its priority right to cater for a greater number against a privileged few,” Afegbua added.