LIRS introduces E-payment for hotel occupancy, restaurant consumption tax

The President of Association of Fast Food Confectioners of Nigeria, Kehinde Kamson, has urged the Lagos State Government to create a level playing ground for all levels of business in the hospitality industry.
Speaking at the unveiling of an automated invoicing system and technology device, Electronic Revenue Assurance system (ERA), at a stakeholders’ meeting, held with hotel and business owners in the hospitality and tourism sector recently, she said that the introduction of 5 per cent consumption tax, in addition to the Value Added Tax, would further move them away from their customers.
Kamson noted that the ‘Mama Puts’ that constitute the informal sector of the economy do not pay taxes and they make more money than the organised restaurants owners.
While noting that most member of the association had closed shops due to high over head costs, she said that, “We will support the Lagos State Government on compliance and 100 per cent remittance. However, the government, through its agency, LIRS, should create a level playing ground for all levels of business in the hospitality industry by initiating this device across the board especially the informal sector or unstructured businesses.
The State Commissioner for Finance, Akinyemi Ashade, stated that, “The hotel occupancy and restaurant consumption tax law is not a new law but an existing law.”
He said that the automated invoicing system and technology device, Electronic Revenue Assurance system (ERA), is to ensure efficiency and compliance of remittance of consumption tax from the owners of hotels, restaurants, nightclub and event centres in the state.
Ashade gave an assurance that the protection of consumers and collecting agents’ details are confidential and would be used only for tax purposes.
On his part, the Chairman of LIRS, Ayodele Subair, said that the hotels, restaurants, nightclubs, fast food outlets, bars, event centers, among others, served as agents of the government for the purpose of remittance of 5 per cent consumption tax collected from customers through the LIRS’ Electronic Revenue Assurance system.
The chairman also stated that the commencement of the new system took effect immediately as LIRS officers would be visiting hospitality places to install the software and train their staff on the use of the new device.
The Electronic Revenue Assurance system is a software application/device that issues invoices and receipts to consumers bearing a unique QR code.
The receipt will also contain detailing of the items and/or services ordered and an embedded automation of consumption tax remittance in real time.
He said that there were incentive for consumption tax-payers as the LIRS is determined to give back to loyal consumption tax-payers, who request for their receipts generated from the ERA system for an opportunity to participate in a draw and win attractive prizes.
The LIRS urges consumers and customers of hospitality places in Lagos State to always demand for the ERA system receipts in the overall interest and benefit of all.
The President of Lagos Hoteliers Association, Adekunle Akilo, noted that sensitisation and training process for effective utilisation of the device should be continuous to help business owners and consumers in the hospitality industry to fully embrace the technology.
Meanwhile, the Lagos State Internal Revenue Service, LIRS, has shut down 20 hotels, restaurants and event centres because of their failure to remit taxes.

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