Consumption tax: LIRS Plans Automated Collection from Hotels, others

 In Investor News

The Lagos Internal Revenue Service will commence an automated collection of consumption Tax from Hotels, Restaurants, nightclubs and event centres in Lagos State.

In a statement signed on Tuesday 13th February, 2018 by the Director, New Growth Area, LIRS, Ayodele Adebayo, the Agency said it introduced the Electronic Revenue Assurance System (ERAS) to elicit automatic compliance with the extant Hotel Occupancy and Restaurant Consumption Tax Law of Lagos State as amended.

The Law imposes a five per cent Consumption Tax on all expenditures made on products and services at hospitality outlets in the State in line with the section 2 of the Hotel Occupancy and Restaurant Consumption Law of June 2009.

The Chairman, LIRS, Mr. Ayodele Subair, was quoted as saying that the ERAS would ensure financial accountability and efficiency for collecting Agents, accurate deduction and automatic as well as transparent remittance of Consumption Tax as well as rewards for consumers.

He said, “Electronic Revenue Assurance System, using the electronic fiscal device, 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.

“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.”

The LIRS said it was determined to give back to loyal consumption taxpayers who request for their receipts generated by collecting agents with a reward scheme being put in place.

Consumption tax: LIRS plans automated collection from hotels, others

 

 

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