Is the new Lagos land use charge justified?

• Adedotun Bamigbola (Vice Chairman, Nigerian Institution of Estate Surveyors and Valuers, Lagos State branch)

My position is not different from that of the Nigerian Institution of Estate Surveyors and Valuers. We can’t say whether it is justified or not. Is government justified in making tax laws and other policies? Yes, it is and that is one of the things we have engaged officials in government to do by electing them into offices. The other side is the timing and the fairness of the policy (Land Use Charge Law). How does it resonate with the people looking at the prevailing (economic) condition? That is a different issue entirely.

I think to an extent, the (state) government has tried to consult the people about the policy. But the government has to gauge whether what people are saying will eventually translate to what it is engaged to do for the betterment of the society; whether views have been fully captured. They have to gauge this and apply it to the policy implementation.

I understand that the assessment of property for Land Use Charge will start soon. But the position of the institution is that this could have come before the distribution of land use charge bills.

However, the position of the Land Use Charge Law allows an individual to approach an estate valuer to help value a property and use it for the purpose of contesting the assessment. So, there is an opportunity to seek redress.

It is not just an emotional thing; we should look at it professionally and what is allowed under the tax system globally and see how it is implemented to the extent that everybody can say it is a win-win situation. I don’t believe the government wants to make money from the the Land Use Charge and put it somewhere else. It is going to be spent on infrastructure.

But the timing, the process and other things should be looked at to ensure that the people will be sure that the implementation is not going to be lopsided.

• Festus Keyamo, SAN (Human rights lawyer)

It is something I oppose basically because we are just coming out of recession and people have yet to recover financially and putting an extra burden on them is wrong. It is not a welcome policy and it is not one that takes into account the hardship that people are going through.

As it is, residents of Lagos State are already overburdened by a lot of taxes. You must balance the desire to build infrastructure with the well-being of the people. If the people are not alive to enjoy the infrastructure you want to build or if they are too hungry and angry to enjoy the infrastructure, then it makes no impact.

Governance is about bringing succour to the people and I think it will be extremely unfair for the Lagos State Government to continue to pursue this increment at this time when we have just come out of recession.

If the government wants to raise more revenue, it can do so by looking at other areas. The state government has so many other ways of generating revenue. Lagos State has a lot of industries. Let the state government target the rich and not the poor. The increment in Land Use charge will affect everyone. It will affect the average income earner as well. Let them target the extremely rich and not those who are struggling to survive. Let them target high-end industries and commercial ventures to raise funds for the state.

• Mallam Yusuf Alli (Senior Advocate of Nigeria)

Given our economic situation in Nigeria today, the government must have sympathy and empathy for the people. Imposition or addition of any payment of money on citizens now could be exposing them to avoidable pains. While it is true that the government will have to run with the payment of taxes but it is better for citizens to be alive to pay taxes rather than using taxation to kill them.

My understanding is that the Lagos Land Use Charge was geometrically increased and I think that given the economic difficulties the average person is facing, the timing is not good. This is not the best of time.

I will advise Governor Akinwunmi Ambode to revert to status quo ante until the economy improves. He should not ‘kill horses by riding them to death.’

Lagos residents have justifiable reasons to complain.

My advice to Lagos residents is that they should keep on pressing for a review in accordance with the provisions of the law. They should act lawfully even while they are asking the government to rethink and revert to the old days. They must not do anything unlawful. You cannot use unlawful means to achieve a lawful end. You have to act legally if you want legal results, we do not want any act of illegality. I am sure the governor is a listening person; he will listen to the people. I am optimistic he will listen to the cries of the people because the voice of the people is the voice of God. He is there because people said he should be there. He should listen to the people who with their votes put him in the position of authority to govern and serve them.

• Femi Falana, SAN (Human rights lawyer)

Due to the excruciating economic situation in the country, I believe Lagosians have justifiably kicked against the law.

I attended one of the sensitisation programme convened by the Attorney-General, Mr. Adeniji Kazeem, and we were assured that the Ambode regime would review the law to reflect popular wishes in a way that it is applied with a human face.

 The Lagos State House of Assembly took Lagosians for granted.

Next time, the house would have to engage in proper consultations through public hearings before enacting laws that have such an impact on the people.

• Habeeb Whyte (Legal practitioner)

The newly enacted Lagos State Land Use Charge Law 2018 came into force after the Land Use Charge Law of 2001 was repealed.

Under the new law, property owners in Lagos State are expected to pay a 200 per cent increase in the Land Use Charge.

This law was enacted to fuse three tax payments. These are: the tenement rate, grant rent and neighborhood improvement tax.

In essence, whenever a property owner pays the newly introduced Land Use Charge, such a person is considered to have paid the three taxes mentioned above.

It must be noted as a matter of importance that no law is bad save for particular provisions that may seem bad.

Every state has exclusive powers to enact a law that deals directly with the affairs of the state. The Lagos State government basically has introduced this law in a bid to generate more revenue.

The increase in the new Land Use charge would in no doubt help the government to get additional resources and the government can in return provide social amenities for the benefit of the general public. The essence of this law is for those that pay more to take care of those that pay less which is fair in law and equity.

Also, a careful perusal of the law shows that it is a progressive one in the sense that it is targeted at those that are making huge amount of profits on properties in Lagos State. It means that if you make more money, you must pay more tax.

The law does not affect those that are not using their property for commercial purposes. It also exempts pensioners, retirees and those using their property for the purposes of charity. The law as a whole protects vulnerable members of the society.

We all know that Lagos State is a state with high demands and expectations and if the government does not make efforts to improve its internally generated revenue, it would fail woefully in part, if not in the whole. For government to perform optimally, it must meet the demand of the people. Taxation is the way to go, if the government must raise resources for development.

The government has done well by raising the charges on property since that is the major source of income for most residents of Lagos. If people are making more money in a particular sector, then the government must make money from that sector too. In most of the advanced countries Nigerians adore, the progress they see was made possible through taxation, so, why not Lagos State?

Anyone who expects an environment conducive to business development must also be willing to help the government to create a better vision for governance. This can only happen when people pay appropriate taxes.

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