“Land Use Charge not meant to overburden property owners” – Ambode
Governor Akinwunmi Ambode has defended the state government’s decision to implement the controversial Land Use Charge act, saying the review of the law was not a deliberate attempt by the government to overburden property owners but a decision taken in the overriding interest of the future of Lagos.
Ambode had this to say about the controversial land use charge law during the ‘Lagos Means Business’ forum on Tuesday: “The law was made in 2001. It provides that every five years, we should review it and also find a way to increase. 15 years after in 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, are they the same? Did it not come at a cost? So, why is the market value of the property that you built with one million naira, 15 years after, you are selling at N20million.
“Why do you think somebody who is a buyer will pay N20million for it? Is it not because of the facilities around the property? So, we have to sacrifice; that is how it works everywhere.”
The governor also said “while the revised Land Use Charge law requires owner-occupiers to pay just 0.076 per cent, pensioners, churches, mosques, non-governmental organisations and government institutions are exempted from payment.
“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 people.”
The governor, however, said he was open to dialogue to resolve the issues plaguing the controversial law.
