The Ondo State government has concluded plans to sanction defaulters of its Land Use Charge in the state, beginning from December 1, 2021.
The chairman of the Ondo State Internal Revenue Service (ODIRS), Mr Tolu Adegbie, disclosed this during a sensitisation campaign in Akure, the state capital on Tuesday.
Adegbie who warned that a taskforce has been empowered to begin enforcement on commercial and industrial properties in the state, noted that a lot of people have been defaulting despite series of sensitisation on the Television and Radio stations.
According to him, “The year is running to an end and this charge is paid annually, so a lot of people have not paid for a while and we’ve been doing sensitization on the Television, Radio urging them to come and pay and we’ve even pasted seal notice on some properties of people who have not paid, but we keep getting reports of some people claiming they are not aware of it.
“So, we decided to do a road show and goverment is the largest employer of labour in this state and that’s why we decided to go to all goverment agencies and residential areas with specially made flyers for the people to know the penalty of not paying land use charge.
“We are giving them enough time, we are starting the enforcement in the month of December, so people have a whole one month to pay their LUC and we implore everyone to pay.
“Before the advent of Governor Akeredolu into Ondo State in 2017, the maximum amount collected from the LUC was about N7m. The law was actually passed in 2014 by the immediate past governor, Dr Olusegun Mimiko.
“In 2018 alone, we collected about N150m, in 2019, we collected N180m and in 2020, we collected N200m. This year, we’ve shared N120m and we are hoping to collect about N250m before the end of the year.”
While explaining that the charge will help to bring development closer to the grassroot, Adegbie said a certain percentage of the amount generated will go to the local governments in the state.
“The LUC law states that anything that is collected should be shared between the state and the local governments. The state gets 80 per cent and the local government gets 20 per cent.
“However, Governor Akeredolu had approved the increase of the share of the local government to 30 per cent while the state gets 70 per cent,” Adegbie added.