Hoteliers kick against Consumption Tax in Oyo

By Chidinma Ewunonu-Aluko, Ibadan 

The Oyo State Hoteliers Association of Nigeria has kicked against consumption tax introduced by the state government in May.

The association expressed its misgivings in a communique issued in Ibadan on Tuesday at the end of its Board of Trustees meeting.

The communique was jointly signed by the association’s president, Chief Ayodele Ogundele, the vice-president, Chief Joseph Emoabino and Prince Adekunle Adesanya, the Public Relations Officer, and the Financial Secretary, Adetona Ibraheem.

It was also signed by the association's welfare secretary, Mrs Anna Anjorin and the Secretary,  Mr Jide Fadare.

It declared that the charge amounted to double taxation, as members also pay 7.5 per cent VAT to the Federal Inland Revenue Service (FIRS).

“Our survival is at risk because to pay the consumption tax as well as VAT to FIRS will be suicidal for the industry,’’ the association declared.

It lamented that after managing to survive the challenges of COVID-19, hoteliers experienced massive inflation and dearth of workers.

It lamented that the twin-problem of lack of electricity and skyrocketing increase in the price of diesel to power generators had become an albatross pushing businesses to the verge of collapse.

The association added that payment of multiple taxes and outrageous bills to the state government had made businesses to nosedive.

“All hoteliers are currently running at below 50 per cent of capacity because of cost of electricity generation.

“We are no longer generating enough money to pay and take care of our staff, so they are leaving even when we need them the most,’’ it stated.

The association also remarked that the tourism and hospitality industry was the largest employer of labour that could not toy with salary payments and staff welfare.

“We contribute a lot and greatly, especially in the area of job creation. Our industry is not the type government should watch to suffer at all because it will affect all sectors, including food supply.

“This consumption tax on hotel occupancy and restaurant consumption is uncalled for and the association is instituting legal action against the state government over it,’’ the association stressed.

"We want Kunle Abimbola and Co legal practitioners to institute the legal action in a Court of competent jurisdiction.

"The association's president and PRO are authorized to represent the association for this purpose and sign all documents relating to it," they affirmed.

 (NAN)