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Commissioner for Finance, Dr. Mustapha Akinkunmi (middle), addressing journalists, flanked by the Permanent Secretary, Ministry of Finance, Mr. Tunde Ogunleye (left) and his counterpart in Ministry of Information & Strategy, Mr. Fola Adeyemi (right) during a press briefing on Land Use Charge in the State, at the Bagauda Kaltho Press Centre, the Secretariat, Alausa, Ikeja |
The Lagos Government on Monday
said it would not hesitate to seal the properties of residents who default in
paying their Land Use Charge (LUC), just as it warned that it may explore the
option of prosecuting defaulters according to the Law.
Addressing journalists at the Bagauda Kaltho Press Centre in
Alausa Secretariat, Commissioner for Finance, Dr. Mustapha Akinkunmi, disclosed
that the State Government has put in place a variety of payment options which
included paying at the bank or the nearest Land Use Charge offices to residents
using cash or POS or payment online through credit or debit cards.
Akinkunmi, who apologised for the delay in the distribution of
the bills this year, attributed it to the need to clean up the data sets which
were previously in operation, adding that a more robust clearer data sets were
now in place.
He however said despite the delay in the delivery of the bills,
tax payers are still entitled to the usual 15 percent discounted rate if
payment is made within 15 days of bill delivery, while others who pay outside
the 15 days grace not exceeding 30 calendar days would pay the actual due
amount.
He said that failure to do that
would attract penalty from the 45th day
after bill delivery and rise further afterwards, and that properties in such
category would be sealed, while owners would be prosecuted in court in
accordance with the law.
“Payment of Land Use Charge is a requirement of law and property
tax. Defaulters will have their properties sealed and are liable to be
prosecuted in court,” Akinkunmi said.
The Commissioner, also clarified the debate on who should be
liable to pay Land Use Charge, stating that by law, the onus falls on land
owners/landlords to pay LUC and not the tenants.
He said, “It is the landlords that are expected to pay the
Charge. They can have agreements with their tenants, but from the government’s
perspective, it is the landlord that the law recognises in paying the Charge,”
he said.
He counseled residents to desist from patronizing touts or any
official in a bid to cut corners on the payment of Land Use Charge, just as it
urged people to imbibe the culture of willful payment of taxes.
He said the process of payment of the charge has been fully
automated by the government; hence residents should stop patronizing touts
henceforth in other to avoid paying twice.
“I would like to appeal to all property owners to stop
encouraging such habit. The Land Use Charge is totally automated because we
have records of all properties in the state. I would encourage all property
owners to go through normal procedure of payments to the government. If you go
through any other means whether through back door or any other means, such is
at your own risk,” Akinkunmi warned.
He said percentage payable based on owner-occupied is 0.0394 percent
of the value of the property, while the percentage for industrial, educational,
residential properties occupied by owners and third parties is 0.132 percent.
Commercial and residential properties occupied by third parties,
according to Akinkunmi would pay 0.394 percent of the value of the property.
While clarifying the methodology adopted in determining the
value of a property, the Commissioner said the value of properties vary with
location, hence the Ministry has a template for carrying out valuation process.
He said: “There is a Valuation Department in place at the
Ministry of Finance and they have the methodology of how they do the
calculation of the property. We now use the ratio as the percentage earlier
mentioned.”
He also warned against harassment of government officials by
residents in the course of carrying out their lawful duties.
He said: “The full wrath of the law will be invoked on any
resident who assaults a Lagos State official in this regard. If a resident
suspects that a person is impersonating a Lagos State official, please report
them to the Office of Finance, Ministry of Finance in Alausa or to the Police.”