Kaduna abolishes tenement rate, introduces Land Use Charge

Governor Nasir El-Rufai of Kaduna State.

The Kaduna State government has abolished tenement rate and in its place, introduced Land Use Charge.
Property owners in Kaduna State say they have started receiving demand notices for payment of 2017 land use charge, according to Channels TV.
A statement by Kaduna Internal Revenue Service (KADIRS) Executive Chairman, Mukhtar Ahmed, said that the state has abolished payment of tenement rate, which was previously collected by Local Government Councils.
Ahmed, described the rates applied to land use charge in Kaduna State as being among the lowest in the country. Ahmed said the rates are based on the location of the property, adding that the scale of fees applicable in specific areas of the state has been published on the state website, www.kdsg.gov.ng.
The KADIRS chairman explained that in demanding payment of the Land Use Charge, the service is acting in accord with its powers under the law. “Pursuant to the Taxes and Levies (Approved List for Collection) Act, VAP T2 LFN as amended and the Kaduna State Tax Codification and Consolidation Law 2016, the Kaduna State Internal Revenue Service hereby notifies the general public, especially property owners, that with effect from August 2017, KADIRS will commence the assessment and issuance of Demand Notices for Land Use Charge(LUC) on real properties in the state.”
Ahmed disclosed that the abolition of tenement rate is in line with the Kaduna State Government’s policy of eliminating multiple taxations.
KADIRS reminded property owners that the service has established a seamless payment process for the land use charge: “Property owners are advised to pay the Land Use Charge (LUC) into any of the Kaduna State Internally Generated Revenue(IGR) accounts with any of the collecting banks within 30 days from the date of receipt of the notice. Property owners are required to forward evidence of payment (e-ticket) to KADIRS and collect an official revenue receipt”.