Business
TAX: Lagos targets hospitality industry with automated revenue collection
The Lagos Internal Revenue Service (LIRS) has introduced an Electronic Revenue Assurance (ERA) System in the hospitality industry in Lagos State in order to enable strict compliance with the extant Hotel Occupancy and Restaurant Consumption Tax Law of Lagos State as amended.
The move covers Hotels, Restaurants, Night Clubs and Event Centres operating in the state.
Chairman of the LIRS, Mr Ayodele Subair, intimated on the newly adopted technology, “The Electronic Revenue Assurance System using the Electronic Fiscal Device (EFD) is a software application/device that issues invoices and receipts to consumers bearing a unique QR code, detailing the items and/or services ordered and an embedded automation of Consumption Tax remittance in real time”.
LIRS boss further explained that the law imposes a 5 per cent Consumption Tax on all expenditures made on products and services at the hospitality outlets’ in line with section 2 of the Hotel Occupancy and Restaurant Consumption Law of June 2009.
Read also: No chance FG will divert N2.4tn capital budget for 2019 election- Adeosun
He also stated that the ERA system ensures financial accountability and efficiency for collecting agents, accurate deduction and automatic, transparent remittance of consumption tax as well as rewards for consumers.
“To protect consumers, payments and receipts generated will be tracked and monitored to verify the authenticity of receipts issued. We hereby implore owners of restaurants, hotels, nightclubs and event centres in Lagos State to embrace and comply with this new initiative not only because of the legal consequences of its violation but also for its mutual socio-economic benefits. LIRS is determined to give back to loyal Consumption Tax payers who request for their receipts generated by collecting Agents with a reward scheme being put in place.”
RipplesNigeria… without borders, without fears
Click here to join the Ripples Nigeria WhatsApp group for latest updates.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: In Kwara, multimillion-naira milk processing plant is abandoned, converted to a chicken outlet
After the government spent millions of naira to establish a milk processing plant in Kwara State that would provided jobs...
SPECIAL REPORT: For Sokoto communities, promise of healthcare is akin to death sentence
In this story, ABDULRASHEED HAMMAD delves into the dire realities of Primary Health Care services in Sokoto State, shedding light...
ICYMI…SPECIAL REPORT: NNPCL hides behind PIA to frustrate disclosure, accountability
Nigeria’s major oil company, Nigerian National Petroleum Corporation Limited (NNPCL), in what appears to be a common practice of disregard...
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...
SPECIAL REPORT: Torturous experiences of students with disabilities in Oyo tertiary institutions
For students with disabilities in Oyo state-owned tertiary institutions, learning is a torturous and distressing experience, considering the building structures...