Governor Akinwunmi Ambode of Lagos State on Tuesday said his administration was ready to dialogue over the revised Land Use Charge Law which has generated so much controversy.
Governor Ambode, who spoke during a forum with the organised private sector tagged “Lagos Means Business”, said 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.
He said the law enacted in 2001 provides for an upward review every five years, but that the state government had not carried out any review of the up until 2017, adding that the recent review was in line with the present economic realities.
“The law was made in 2001. It provides that every five years, we should review it and also find a way to increase,” he began.
“Fifteen 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.
“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.”
Explaining further, the governor said that 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. 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,” Governor Ambode said.
The governor also expressed concerns that out of the eight million taxable adults in the state; only about two million submitted their tax returns while only 700,000 actually paid their taxes last year.
“We are 24 million; taxable adults in Lagos are 8 million. The number of people that actually submitted tax returns in 2017 is 2million and then only 700, 000 people paid their taxes,” he said.
He said the current tax returns were not enough to cater for the capital projects on-going 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, Governor Ambode said his administration was committed to creating an enabling environment for businesses to thrive, adding that concerted efforts have been made to encourage investors to set up their businesses in the State, which according to him 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 brief remarks, President of Dangote Group, Aliko Dangote, commended the governor for deeming it fit to organise a forum to meet the business community in Lagos, adding that his passion to make Lagos great was not in doubt.
