NIGERIA’S CENTRE OF COMMERCE BOWS TO PRESSURE TO REDUCE ITS EXCESSIVE LAND TAX
Earlier today, the state Commissioner for Finance, Akinyemi Ashade announced a 50 percent discount for commercial property owners while private and industry property were given an additional 25 percent increase.
Meaning that a commercial property previously billed N91,200.00 for its N20M value, will now be billed N45,600.00 per annum, while N20 million industrial property expected to pay N30,720 will now pay N23,040 per annum.
However, other rates and reliefs like the 40 percent general relief, 10 percent for 70 years and above, 105 percent for persons living with disability and 10 percent for properties that are 25 years old remain unchanged.
Prior to now, the 2018 land use charge law as amended cited the various yearly charges on properties occupied by different categories of people. A property solely occupied by the owner for a residential purpose will be charged at a rate of 0.076 percent per annum, but if occupied by the property owner and tenant(s) or third parties it will be charged 0.256 percent per annum, while a rented property for revenue generation will be charged at 0.76 percent per annum.
With these changes, the Lagos state government revealed that the penalty for late payment has also been waived and those who have paid the fee allocated to them would enjoy tax credits.
“The penalty regime for late payment of land use charge has been waived completely. Therefore, LUC payers who have received their bills will no longer be penalized for late payment of bills issued in 2018, thereby providing additional relief to LUC payers.” The state government expressed.