NECA gets concession from Fashola on consumption tax

Following the enactment of the Hotel Occupancy and Restaurant Consumption Law 2009, the Hotels and Personal Services Employers’ Association (HOPESEA), an affiliate of NECA, had filed a case on behalf of its members at the Federal High Court to seek clarifications on the appropriateness of the Tax. While the legal suit subsists, the hoteliers had […]

Following the enactment of the Hotel Occupancy and Restaurant Consumption Law 2009, the Hotels and Personal Services Employers’ Association (HOPESEA), an affiliate of NECA, had filed a case on behalf of its members at the Federal High Court to seek clarifications on the appropriateness of the Tax. While the legal suit subsists, the hoteliers had refused to comply with the law.
Due to the ruling of the court in the case ‘Attorney General of the Federation vs. Attorney General of Lagos State,’ the Lagos State Board of Internal Revenue Service had come after the hoteliers to collect all outstanding payment arising out of the law, a situation that had led to a disagreement between the parties, eventually leading to the intervention of NECA.
A statement by NECA’s Director-General Olugbenga Osinowo said it is a big relief to all and sundry when the Lagos State Governor, Mr. Babatunde Raji Fashola announced a waiver of taxes not collected at the inception of the Act…and in the spirit of fairness, to credit the account of those who did not collect taxes but made payments to government in fulfillment of the law.
Osinowo said, “The outcome of this unrelenting peaceful follow up by NECA is an eloquent testimony of good governance that has been the hallmark of the government of Mr. Babatunde Fashola which the private sector very much appreciate.”
He said NECA has already communicated the relief to Hoteliers that are its members.