The Lagos State Government has bowed to pressure sparked by criticism of the controversial Land Use Charge earlier announced by the State Governor, Akinwumi Ambode.

According to reports, the reduction was part of the resolutions reached at a meeting held today (Thursday) between members of the Executive Council and the State Governor.

It would be recalled that the state government had, less than two weeks ago, increased the charges by 400 per cent in accordance with the Land Use Charge Law of 2018.

The increase attracted tongue-lashing and lamentations from the general public, especially residents of the state, questioning the rationale behind the controversial increase by 400 per cent.

The charge, which has been reduced by 50 per cent, will also be collected by installments and no penalties for late payments.

The government also reduced charges for owner-occupier with third party — including industries and manufacturing concerns by 25 percent, and would clear up tax credits given for LUC charges.

The 50 per cent reduction means owners of commercial property (land) valued at N20m will now pay N45, 600 LUC per year, instead of the heightened bill of N91,200.

It also means that land property occupied by owner and third party and property used for industrial and manufacturing purposes will now enjoy 25 percent discount.

This means that a N20m property expected to pay N30, 720 will now pay N23,040 per annum.

Owner-occupied property will enjoy 15 percent discount. So, for a N20m property, this used to be N9,120. Now, it is N7,752 per annum.

Other rates and reliefs, apart from the ones stated above, will remain unchanged and will be implemented as stipulated by the Law.

These include 40 percent general relief, 10 percent for 70 years and above, 10 percent for properties owned by persons living with disability and 10 percent for properties that are 25 years old, among others.

Owners of Property across all categories will now be allowed to make payments by installments, to reduce the burden of taxation on citizens.

The reviewed LUC law for rates and reliefs, as categorized according to type of ownership and use, will be sent to the Lagos State House of Assembly for passage into law.