Lagos reduces cost of land acquisition

He said the order is to ensure that land transactions are carried out with minimal difficulty especially relating to payment of taxes, rates and legitimate levies charged under the enabling law. The Executive Order (No. EO/BRF/001 of 2015) provides among others that “unless otherwise indicated, the valuation of landed property for the determination of tax and […]

He said the order is to ensure that land transactions are carried out with minimal difficulty especially relating to payment of taxes, rates and legitimate levies charged under the enabling law.
 The Executive Order (No. EO/BRF/001 of 2015) provides among others that “unless otherwise indicated, the valuation of landed property for the determination of tax and other charges payable shall be by reference to the Statement of Fair Market Value produced by relevant professionals, adopted by the state government and published from time to time in the official Government Gazette.”
 The order which takes immediate effect reduces Consent Fees from 6 percent to 1.5 percent while Capital Gains tax which was 2 percent is reduced to 0.5 percent.
Also cost of Stamp Duty has been reduced from 2 percent to 0.5 percent while Registration Fee has been reduced from 3 percent to 0.5 percent.
In his remarks before signing the order, Fashola said it was intended to improve the internal management of the state government and not to create any rights or benefits, substantive or perpetual, enforceable at law or in equity by a party against Lagos State, its departments, agencies or entities, its officials, employees or experts or any other person.
 The governor said at the time when the state’s economy is challenged, there is need to continue to grow the information on capital, business concerns and industrialisation adding that some of the expectations in expanding business in the state’s enterprise and free trade zones could only be achieved through the reduction of cost of land acquisition.
Fashola said the signing of the Executive Order is consistent with the promise he made to Lagosians when he presented the 2015 budget that he would do so “based on the decisions of council”.
He said the order “sends the strongest possible signals to any of the investors about where to put money.
“So, consistently in Lagos the cost of land transactions have come down from 30 percent or thereabouts in Pre-1999, down to 13 percent around 2005 and finally now to cumulative total of 3 percent and I hope that the investing public will respond to this favourably especially local investors because for me, local investors are the most important investors,” he said.
He urged the Land Bureau to work closely with the Office of the Secretary to the State Government to gazette the Executive Order.