PROPERTY NEWS

FOLLOWING complaints by the organised private sector and members of the Nigerian Institute of Town Planners (NITP) Lagos State Chapter, state authorities may have waded into the issue of double taxation in housing projects towards harmonising various charges.

The state has been inundated with complaints from town planners and other professionals in the building sector over problems being faced by prospective homeowners and private developers, which have impacted negatively on the housing stock in the estate. One of the major issues at stake is the problems of land Use Charge and infrastructure Development levy and delays in governor's consent as well as neglect of some estates in the distribution of infrastructure.

The Special Adviser, Taxation and Revenue to the state governor, Mr. Ade Ipaye who spoke on 'Lagos State Tax Policies: The Real Estate Sector and Pattern of Urban Development' at the monthly meeting of the chapter agreed that there may be some anomalies in some of the charges and urged NITP to set a committee to present a formal report to the government, which will take into cognizance the charges and suggested recommendations. He promised that the state would look into the issues and harmonize the charges.

Earlier, former ATOPCON President, Dr. Femi Olomola and an NITP past President, Mr. Bunmi Ajayi had raised issues bordering on Infrastructure Development Charge, the Neighborhood Charge and Land Use Charge. They had argued on the need to harmonize the infrastructure development levy on layouts and ensure differentiated charges for each as every homeowner pays the same amount whether in Agege or Lekki.

Other town planners had also complained that valuation for land use charge are arbitrarily done without recourse to the existing building such that residential apartments are valued as commercial property.

Essentially, Lagos NITP chairman, Mr. Moses Ogunleye said: "We are worried on the implication of the taxes or charges like infrastructure development charge, Neighbourhood Enhancement charge, Land Use charge and others on the real estate sector. There have also been complaints from developers, investors and even manufacturers. There is the need to consider the views of all stakeholders by the government."

Ogunleye who commended the state government for its efforts at improving service delivery by its agencies charged with tax or revenue collection, believed that government should be able to raise revenue to fund its development projects and to enhance governance, but that this should be done with due diligence so that it does not become retrogressive.

Ipaye noted that the state encourage participatory democracy through the promotion and sustenance of voluntary tax compliance which will in turn encourage tax payer vigilance and constant monitoring of government activities by the citizenry.

According to Ipaye, the state has introduced several polices to meet the needs of Lagos, which is facing housing congestion in certain areas, incidence of illegal change of land use and increase in intensity of use of available buildings due to rapid urbanization.

Among the policies are the implementation of the Land Use Charge law, consolidation of all land related levies and charges such as tenement Rate law, Land Use Act (ground rent), Neighbourhood Improvement charge law and land rates, elimination of a multiple taxation on real estate and ensuring efficient use of real estate.

In meeting its challenges, he said that the state government has also introduced the 30-day consent to subsequent transaction on land and fixed rates for the determination of consent fee payable in different areas of the state, transparency of procedures, reduced cost of transaction, computerization of the land registration details and a one stop shop to reduce the burden in land titling.

He urged the town planners to declare income honestly to appropriate and lawful agencies, filling of tax returns, withholding tax, pay as you earn obligations as well as send their complaints on the implementation of the governors consent to the revenue and information unit, which will take it up with the relevant agencies. He added their complaints would help in reshaping their policies and make relevant agencies brace up in serving the public.