The Lagos State Land Use Charge (LUC) is a consolidation of all property and land based rates and charges payable under Lands Rates, Neighborhood Improvement Charge and Tenement Rates Laws of Lagos State. The Land Use Charge derives its legitimacy from the Land Use Charge Law No. 11, of 2001. It was designed to help the government generate additional revenue needed to develop the state in the light of increasing demand for provision of urban and rural infrastructure and other expenditure.

However, the implementation and enforcement of the land use charge have continued to raise dust. The modus operandi of the law has generated controversies over the years and some residents of Lagos are still confused as to what the land use charge is really about. The LUC law does not apply to all properties in the State. Properties that are exempted from the operation of the law are government-owned properties, and other properties used for public, religious and charitable activities. However, this exemption will only be granted where an application for exemption is made to the State Commissioner for Finance.

A consumption tax is essentially a tax on the purchase of a good or service. It may take different forms such as sales taxes, tariffs, excise or other taxes on consumed goods and services. It has the distinct feature of not penalizing savings unlike income taxes. Consumption tax is charged in different forms in several…

ANY country that wants to achieve  development must take a second look at how much revenue it generates from taxes, especially consumption taxes. Such taxes are charged on the purchase of goods or services, with rates varying from one country to the other.

Statistics showed that in Canada, consumption tax rates range from zero to 10 per cent along with the federally applied goods and services tax of five per cent just like Nigeria’s Value Added Tax (VAT).

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