The Organised Private Sector (OPS) yesterday told the Lagos State Government that the reduction of the land use charge by 50 per cent would not ameliorate the over 500 per cent increase in the new rate.
The group in a letter addressed to the state Commissioner for Finance, Akinyemi Ashade, and obtained by The Guardian, stated its position after analysing government’s concessions.
It argued said that the reduction fell short of expectations of the business community, noting that government has not addressed its fundamental requests, which include reduction in Base Percentage rate or Assessed Market Value.
The letter, which was signed by Olusegun Oshinowo on behalf of the OPS, stressed that the issues were critical and needed to be urgently addressed by the state government’.
“In the spirit of the long-standing partnership and ongoing social-dialogue between the Lagos State Government and the Business Community, we therefore, request that government takes a second look at the propositions.
“We have the mandate of the business community to challenge this law in court, as we did in 2002, should the government continue to ignore our request for a respectful constructive dialogue between it and the OPS, which is highly desirable for the resolution of the issue. We look forward to your urgent consideration,” the letter reads in part.
The Lagos State Government had on Thursday announced a reduction in the land use charge to be paid by property owners in the state.Announcing this at a press briefing in Alausa, Ashade, said the rate for commercial charges had been reduced by 50 per cent while owner-occupier, industries and manufacturers charges had been reduced by 25 per cent.
Ashade also announced a waiver of all earlier penalties across board, maintaining that those who have paid would enjoy tax credit, with the excess paid transferred to next year. He also said the state would henceforth allow payment by instalments across board.
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