Lagos automates consumption tax collection

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The Lagos Internal Revenue Service (LIRS) has introduced an Electronic Revenue Assurance (ERA) system for hotels, restaurants, night clubs and event centres in the state.

This is in 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 the hospitality outlets in line with Section 2 of the Hotel Occupancy and Restaurant Consumption Law of June 2009.

The ERA System ensures financial accountability and efficiency for collecting agents, accurate deduction and automatic, transparent remittance of consumption tax as well as rewards for consumers.

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Speaking on how the newly adopted technology works, LIRS chairman, Mr Ayodele Subair, said the ERAS using the Electronic Fiscal Device (EFD) 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,” he said.

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The post Lagos automates consumption tax collection appeared first on The Nation Nigeria.

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