Oyo State Hoteliers Kick Consumption Tax

Nigeria’s Oyo State Hoteliers Association has spoken out against the consumption tax introduced by the state government in May. The association expressed its doubts in a statement issued in Ibadan on Tuesday at the end of its Board of Directors meeting. The statement was co-signed by the association’s President Ayodele Ogundele, Vice President Joseph Emoabino, and Prince Adekunle Adesanya, Head of Public Relations, and Financial Secretary Adetona Ibraheem. It stated that the charge amounted to double taxation, as members also pay 7.5 percent VAT to the Federal Internal Revenue Service (FIRS). “Our survival is at risk because paying consumption tax in addition to VAT to FIRS would be suicide for the industry,” the association stated. He lamented that after managing to survive the challenges of COVID-19, hoteliers experienced massive inflation and a shortage of workers. He lamented that the twin problem of the lack of electricity and the skyrocketing price of diesel for power generators has become an obstacle that pushes companies to the brink of collapse. The association added that the payment of multiple outrageous taxes and bills to the state government had sent the companies into a tailspin. “All hoteliers are currently operating below 50 percent capacity due to the cost of electricity generation. “We are no longer making enough money to pay and care for our staff, so they leave even when we need them most,” he said. The association also commented that the tourism and hospitality industry was the largest employer of labor that could not play with salary payments and staff welfare. “We contribute a lot and a lot, especially in the field of job creation. Our industry is not the kind that the government should see suffer because it will affect all sectors, including the food supply. “This excise tax on hotel occupancy and restaurant consumption is unnecessary and the association is taking legal action against the state government for it,” the association emphasized. (YAYA) SEE: Governor Yahaya Bello’s roadmap to Hope 2023 Read More Related News Here Let here it in the comment below if you do have an opinion on this; Oyo State Hoteliers Kick Consumption Tax