LIRS data show 1316 outlets fail to comply with hotel occupancy law in Q1

Out of 2518 hotels, facility or event centres, only 1202 are complying with Hotel Occupancy and Restaurant Consumption Law enacted by the Lagos State House of Assembly that imposes tax on goods and services consumed in hotels, facility or event centres within the territory of the state.

Hotel Occupancy and Restaurant Consumption Law imposes on any person, corporate or otherwise who: Pays for the use or possession of any hotel, facility or event centre; or purchases consumable goods or service in any restaurant whether or not located within a hotel in Lagos State. The rate of tax imposed by the law is 5 percent of the total bill issued to the customer excluding Value Added Tax and Service Charge.

Data at the Lagos State Internal Revenue Service (LIRS) on summary of compliance status of hotels, restaurants, bars and event centres as of March 2014, obtained by TAX DIGEST, show that in this first-quarter (Q1), 1316 failed to comply with the provisions of the law.

LIRS is the major revenue generating agency of the Lagos State government saddled with the responsibility of collecting taxes. Over the years, LIRS has increased the state’s Internally Generated Revenue (IGR) by executing various pioneering programmes and implementing strategies that have impacted positively on revenue generation and collection, with the IGR moving from a monthly average of about N600 million in 1999 to approximately N20.5 billion in 2013, thereby making Lagos State less dependent on proceeds from the Federation Account.

Some of the notable names among the thousands LIRS identified as not complying with the law are: Shawarma, 168 Luxury Rooms (Panache Hotel), 24 Carrot Business Hotels and Suites, 24/7 Satis, 4 MS International Hotel, 50-50 Hotel, 7th Heaven Bistro Limited, 806 Restaurant & Bar, 90 – 90 Hotel, A5 Hotel Bar & Suite, Ababo Guest House Limited, Abbey Miliki Spot, Abe-IGI Vantures, Abidap Hotels Limited, Abis Guest House, Academy Hotel Enterprises, Academy Hotels Limited, Ace Lounge Ventures, Addidas Hotel, Adekazeema Hotel, Adens Hotel, Adeodu Hotel, Adkad Guest House, Adlas Place, Admirals Restaurant & Bar, Adoff International Hotel, and Adraoh Hotels.

Also, others notable names identified as not complying with the Hotel Occupancy and Restaurant Consumption Law are: Affluence Ultra Modern Guest House, Afis Restaurant, African Palace Hotel, Africana Hotel Limited, Afro City Hotel, After Hour Spot, Agamathen Garden Hotel, Agromacy Guest House, Ahmak Events Centre (Ahmak Ventures Limited), Aimor Hotel, Airport Chinese Restaurant, Ajadek Hotel, and Ajib Motel.

Iheanyi Nwachukwu