There appears to be discordant tunes among the professionals in the real estate sector over desirability or otherwise of the controversial Land Use Charge recently introduced by the Lagos State government.
The group, in a statement signed by its chairman, Nureni Akinsanya described the law as unconstitutional and anti-business. He hinged this on the fact that the LUC as signed into law by the state government was at variance with section 16 (1) and 16 (2) d of the constitution, even as it was not business friendly.
Said he, “Can it be said that these land use charges were promulgated in keeping with the spirit and intendment of these provisions of the constitution?
“The LUC, 2018 saw the rise of payment of land use charge skyrocket to as high as 400 percent of the initial charges with criminal sanctions attached to default in payment and a right of the government to sue for the sum.
“The contention of the association is the effect of these new charges on economic investments in the real estate market. The rippling effect of the new charge will increase the price of locally-made goods and finished commodities in the state thus killing local companies and businesses in the country,” said AEREDOLS, arguing further that those companies who do not close shop will be forced to the lay off workers in order to restructure their finances to accommodate the new charge.
It also noted that a rather obvious effect is the sharp increase in the cost of goods and other services in Lagos State, as owners, developers of properties, as well as tenants living in the buildings; would be forced to cushion the effect of the taxes on their income. Read more<<<<<