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NECA Ambode
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LASG’s tax drive, Land Use Charge weakening businesses—NECA

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Few days after the Lagos State government sealed the commencement of new regime of the Land Use Charge Law of Lagos State, 2018, the leadership of the Nigeria Employers’ Consultation Association (NECA) has expressed displeasure at the new Act that replaced the Land Use Charge Law 2001.

Even though the state extended the period for the payment of all annual Land Use Charge Demand Notices for 2018 to Saturday, April 14, 2018, the group argued that some provisions of the new Act runs contrary to the ongoing drive to deepen ease of doing business in Nigeria.

Lagos State Government noted that the extension is to enable property owners and affected occupiers to take the option of enjoying the discounts available for the prompt and early payment of Land Use Charge invoices.

In his swift response, the Director-General of NECA, Mr. Olusegun Oshinowo, while commending the Governor of Lagos State, Mr. Akinwunmi Ambode for his good works and making Lagos a model of for good governance, cautioned on the inherent dangers of the Land Use Charge Law of Lagos State ahead.

He said “sensitivity and humanness, which is part of good governance, was missing in the recent amendment of the Land Use Charge law in the state”.

“The new law will expect property owners in Lagos State to pay an increase of over 200 per cent in Land Use Charge even when the income of the property owner has not experienced significant increase to justify the charge. There is, also, a penalty payment ranging between 125-200 percent, if payment is not made between April and August, 2018. The new charge is, thus, highly insensitive and in- humane to say the least”.

Oshinowo averred that “it is, therefore, unacceptable to organised businesses”.

According to him, the new Act which is not acceptable and the Organised Private Sector (OPS), “will not stand hand tied up to celebrate impunity and cheer disdain. It will fight this law by social resistance and any other legitimate means at its disposal”. The state government is yet to react to the new position of NECA.

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