Lagos Imposes 5 Percent Tax On Patronizers Of Hotels, Restaurants, Others
Lagos State Government has imposed what it called “5 Percent consumption tax on people who patronize hotels, restaurants, event centres and others.
In a statement today September 28, the State’s
Internal Revenue Service (LIRS), advised owners of restaurants, hotels, and event centres operating in the state to contribute to the state’s development by prioritizing the monthly collection and remittance of a 5 percent consumption tax on all consumables and personal services.
The State Government, on June 22, 2009, enacted the Hotel Occupancy and Restaurant Consumption Law of Lagos State, otherwise called Hotel Consumption Law, which imposes consumption tax at 5 percent on the value of goods and services consumed in hotels, restaurants and event centers within the state. The tax base is the total cost of facilities, consumables or personal services supplied to a consumer in, by or on behalf of the hotel, restaurant or events centre.
Speaking on The Tax Talk programme, monitored on TVC, the Director, New Growth of the LIRS,
Jimi Aina, said that while the consumption tax is a major source of revenue for the State Government, owners of restaurants, hotels, event centres, etc are obligated to register with the LIRS as collecting agents
He said that the tax would provide the State Government enough funds to provide public amenities and services, such as healthcare, education, transportation and security, .
Aina submitted that contrary to the misconception a lot of people have about consumption tax, the state has not imposed additional taxes on restaurants, hotels and event centres, rather, consumers who purchase taxable goods or services in the state are responsible for paying the consumption tax.
The tax is already included in the price of the goods or services and is paid to the collecting agent who collects it on behalf of the Lagos State Government.
“Many people misunderstand the concept of consumption tax. It is often thought that this tax is an additional burden on hotels and restaurants, but this is not the case. In reality, it is the customers who are taxed when they dine out, attend events, or have drinks at a bar. The tax rate is five per cent. By paying the consumption tax, consumers contribute to the development and maintenance of these amenities and services.”
“According to Section 1 of the Lagos State Consumption Tax Law, consumption tax is defined as a tax on the supply of goods and services in Lagos State, which is charged and payable by the consumer.
“Consumers who purchase taxable goods or services in Lagos State are responsible for paying consumption tax. The tax is included in the price of the goods or services and is paid to the collecting agent who collects it on behalf of the Lagos State Government,l.”
The New Growth Director said that while collecting agents (restaurants, hotels and event centres) have the responsibility of collecting these taxes from consumers and remitting to the LIRS, it’s also important to factor in the deadline for remittances.
“According to the Lagos state consumption tax law, the remittances must be made not later than the 20th day of the month following the month of collection. For example, consumption tax collected in September must be remitted to the LIRS on or before the 20th of October.
Aina noted that there are legal implications to non-remittances by collecting agents who failed to remit consumption tax collected from consumers to the LIRS within the prescribed time.
“Where a Collecting Agent fails to make a return or remittances as and when due, LIRS may make an estimate of the total amount due and such estimate shall become due not later than 21 days of service of such a notice.
“Failure to remit the tax collected within the stipulated time will attract a 10% penalty of an amount not remitted plus interest at 5% above the prevailing Monetary Policy Rate of CBN of Nigeria. Such collecting agent may also face sanctions including closure of business and prosecution.”
Obasanjo And The Face Of Insolence, By Abiodun Komolafe
Former president, Olusegun Obasanjo’s recent discourteous behaviour against some of the traditional rulers in Iseyin, Oyo State has drawn an angry tirade from the public. Not unexpectedly, these comments have come as a mix of both the printable and unprintable words. For yours sincerely, the former president’s comments could only be viewed from two main perspectives.
The first is the pre-colonial era prestige attached to Nigeria’s traditional institution. During the period under review, traditional rulers were in full control to the extent that the then-visiting white men who later became their colonial masters were always at their mercy for acceptance to the kings and the locals. In their bid, the white men always came to these monarchs along with materials such as clothes, tobacco, salt, refined gold and beverages. In return for the perceived kind gesture from the white men, traditional rulers would always pack and sell or give our brothers and sisters who had either been bought or captured in inter-tribal wars as slaves as gifts in return to these foreigners. This relationship continued till it all culminated in what was later known as colonial administration.
It is also interesting to note that the colonial administration then brought the idea that traditional rulers needed to be subservient to the colonial administration. That was the genesis and the starting point of the gradual erosion of the power and influence of the traditional rulers in Nigeria. This was done to see the monarchs as middlemen through whom people were administered indirectly in the protectorates which in any case was resisted by the easterners. The Obas, too, really enjoyed it as it was seen in their fraternization and oppression of the people. But the monarchs had left their lofty positions and begun looking up to the white men or the colonial lords for decisions, directions and favours of all shapes and sizes in all things.
At independence, the colonial masters left, but they left behind the structure for the indigenous administration. Not only that they left, they also gave us a document known as the Independence Constitution which was meant to right all the wrongs of the past and restore the dignity of the traditional leaders, among others. The joy of independence of the year 1960 was however brought to a halt by a group of soldiers led by Major General Thomas Aguyi-Ironsi, who instead of sustaining the regional system of government that was in place, introduced the unitary system of government coloured in federalism, and that’s what has been in place, even till this day. That was how Nigeria went back to its colonial master-monarch relationship.
Needless to repeat, therefore, that Obasanjo and his co-travellers who later found themselves at the seat of power did not see anything wrong with the usurpation of the roles and powers of our revered monarchs. So, there’s no need to restore them. They went on as Nigerian leaders exploiting and further denigrating and desecrating our traditional stools. That is why governors and commissioners have been seen commanding and ordering these monarchs around against their wishes and those of their subjects.
Obasanjo could not have done less; and cannot do less. Here’s a man who places himself above others and with the colonial master’s mentality that is deeply ingrained in him. He sees himself as the eternal bank of the world’s knowledge. That’s why he could appoint and pay political advisers from the public coffers as a sitting president and still declare that he would not listen to them. On an altar of sheer arrogance, this man wasted the Yoruba slot for eight years by pursuing his agenda over that of the general public. For example, as a sitting president, he organized fundraisings that birthed his private university, revamped his erstwhile comatose farm project and established a world-class library for himself. He forcefully made his daughter Commissioner in Ogun, his home state, and senator representing the state at the National Assembly. Obasanjo was also reputed for the inglorious Third Term Agenda.
It is coming from this background that the former president believes that he has a lesson he must drive down the throats of the representatives of our ancestors, the Obas; and he did lead them in that Parade Ground of _‘E dide! E joko!’_ (Stand up! Sit down!), which they sheepishly obeyed.
Too bad! Whereas Obasanjo finds it pleasurable to be denigrating Yoruba Obas, he most certainly cannot try the same with any Emir in any part of the North. In the North, monarchs are recognized in their statute books as a result of the penal code system in operation which is different from what obtains in the South. Here in the South, our monarchs are treated as errand boys for politicians.
Hear The Rev’d ‘Toyin Adesokan’s view on the propriety or otherwise of Obasanjo’s impoliteness to the traditional institution in Yorubaland: _“I am aware that we have Kings in the Bible, from the Book of Genesis, to the Book of Revelation. Among the Kings were Pharaoh, Saul, David and Solomon. We have also read about Kings Ahab, Ahasuerus and Herod of the New Testament. They were all revered as leaders and as the aggregate of their people’s traditions and culture. Prophet Nathan never thought it right to confront King David even with the overwhelming revelation and backing of God in the case of Bathsheba the wife of Uriah, he treaded wisely. Prophet Elijah ran away from King Ahab and Joseph and Mary the earthly parents of Jesus Christ had to obey the divine instruction to escape the little Jesus to Egypt for fear of King Herod. However, what do you think would have become of Obasanjo in the presence of Kings like David, Pharaoh and Herod with that outburst?_
“Finally, the Bible says about kings: “The nations will walk by its light, and the kings of the earth will bring their splendour into it” (Rev. 21:24 NIV). We see here that Presidents, Prime Ministers and Governors were not mentioned. 1 Samuel 16:2 has also shown the paramount nature of the kings and how divine they are above the man-made presidents and governors.”_
With the above from a priest of the Church of Nigeria (Anglican Communion) Diocese of Lagos West, need Nigerians say more? After all, there are many ways to insult a Yoruba monarch and I’m sure Obasanjo knows them all.
May the Lamb of God who takes away the sin of the world, grant us peace in Nigeria!
_*Komolafe wrote in from Ijebu-Jesa, Osun State (ijebujesa@yahoo.co.uk; 08098614418 – SMS only)_