Hoteliers lament multiple taxation 

The negative impact of multiple taxation on businesses in Nigeria occupied front burner at a public hearing in the Senate when hoteliers lamented that they pay between N7.5million and N29million annually as taxes.

They therefore urged the upper legislative chamber to save them from multiple taxation slammed on them by state and local council officials across the Federation.

“In the Federal Capital Territory (FCT), we are charged between N15million, N20million and N29m on yearly basis by the various multiple tax collectors,” President, Hotel Owners’ Forum, Abuja, Chike Ezeudeh submitted on Thursday in Abuja at a public hearing of a bill to repeal the Nigerian Tourism Development Corporation (NTDC) Act 2004  and reenact the Nigerian Tourism Development Authority (NTDA) bill 2017.

He told the committee that members are slammed up to 30 different levies yearly by states and host local government areas.

The Bill places 1 percent per room levy on hotel operators, for the funding of the proposed Nigerian Tourism Development Authority (NTDA).

But hotel owners opposed the proposal, saying it would lead to additional tax burden on them.

According to Ezeudeh: “This is the more reason why we are kicking against the 1% per room levy proposed in the new bill but strongly supported the move by this committee to empower NTDA as sole collector of taxes from hotels in the country”.

In his contribution, one of  the hoteliers from Ondo State, Olafemi Eegbodofo stated that since the Supreme Court ruling of 2013, empowering state and local government councils for collection of such levies being an item on the residual list of the 1999 Constitution, not less than 15 different bodies in the state have been collecting multiple taxes from his hotel yearly,  amounting to N7.5million.

“This to us, is suffocating and killing because the multiple taxation has landed many of us in very uncomfortable position business-wise as regards paying workers salaries and even remaining in business”, he said.

They,  however, supported the move by the Senate to empower NTDA for harmonization of the tax collections.

Chairman, Senate Committee on Tourism, Matthew Urhogide said investment in tourism is particularly important for Nigeria due to dwindling government revenue and economic contraction as a result of the fall in crude oil prices.

He said if the nation is to diversify its economy, the tourism industry must not be ignored.

He said the legislation became necessary, adding that since the enactment of the NTDC Act 14 years ago, the law has not been reviewed in line with current realities.

 

OWEDE AGBAJILEKE, Abuja