NECA ADVERTORIA ON LAND USE CHARGE

THE MATHEMATICAL FACTS AND TRUTH ?

A company paid N420,626.52 (Four hundred and twenty thousand, six hundred and twenty-six Naira, fifty-two kobo) in 2017 and in 2018, the Lagos State Government has asked the same company to now pay N5,804,623.30 (Five million, eight hundred and four thousand, six hundred and twenty-three naira, thirty kobo). This amounts to 1,279 percent increase over the 2017 rate. ?The Lagos State Government increased the assessed market value of the property from N106,758,000.00 in 2017 to N762,762,600.00 in 2018, an increase of over 600 percent The facts as presented above are not unique to this organization but representative of the various demand notices that the Lagos State Government has sent out to residents of Lagos. As a Business Membership Organization, we have in our records the demand notices that have been received by not less than one hundred companies in Lagos State, indicating an increase of not less than 500 percent of the rate paid in 2017. The alleged 40 percent discount of market value by Government is not true as per the above Land Use Charge demand notice. It may interest the public to note that it is not automatic but subject to the discretion of Government.

THE ILLOGICALITY OF SOME OF GOVERNMENT’S REASONS FOR LAND ?USE CHARGE INCREASE The Land Use Charge has not been increased since 2002: It is Government’s negligence not to have reviewed the Land Use Charge every 5 years as stipulated by the Act. It, therefore, runs against rationality for government to suddenly wake up and decide to punish residents for its negligence of time past. ?Use of Market Value: In other climes where a similar tax operates, Asset Market Value is always discounted on the invoice that is sent to tax payers. No reasonable sovereign would use actual market value to charge its residents property tax. ?Figures in demand notices are based on several years of arrears: As seen in the demand notices above and many other demand notices in our record, most property owners are not indebted to the Lagos State Government.

See full advert : ADVERTORIAL – LAGOS STATE LAND USE CHARGE – NECA 2017 & 2018 (AMENDED, FINAL)