ADEQUATE TAX POLICY AND IMPLEMENTATION: A PANACEA TO THE SUCCESS OF A PROPERTY TAX SYSTEM. A CASE OF THE FAILED ANAMBRA STATE PROPERTY AND LAND USE CHARGE (APLUC)

Chinwe N. Odimegwu, Chinelo Igwe

Abstract


Anambra State Property and Land Use Charge (APLUC) Law was promulgated in 2011 in order to address the problem of dwindling revenue allocations to the State. There are doubts as to whether APLUC really yielded the expected dividend for the State. This study, therefore, appraised APLUC with a view to assessing its performance with regards to revenue generation. Three towns, namely, Awka, Onitsha and Nnewi were chosen for this study. Survey design was used to generate data. The APLUC Law was analysed and compared with the property tax policy guide of UN-HABITAT to determine the adequacy of its provisions using content analysis. The responses from the tax administrators (GLOBAL MCKENS) and the Estate Suveryors and Valuers were used to examine the property tax assessment basis and method provided by the law and the extent of tax administration. The study discovered that there is a significant difference between the provisions of APLUC and UN-HABITAT land and property tax policy guide. The APLUC Law did not provide the basis for assessment, the skills and training of tax assessors. It did not define the cycle for updating taxable values among others. This shows that the tax assessment system is not transparent. The basis and method of tax assessment provided by the law based on the responses are not consistent with known equitable principles of taxation. The study recommended that the provisions of the APLUC law should be reviewed to indicate the basis of allocation of the tax burden to tax payers since a transparent tax assessment system enhances public acceptability of the tax. The basis of its assessment should be on income generated from property on annual basis as against the market value of property. The APLUC Law should also name Estate Surveyors and Valuers as the expert property tax assessors since they are the professionals in valuation for property taxation. They should also be included as members of the tax assessment appeal panel so as to create a transparent assessment system.


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