In continuation of the on-going tax enforcement exercise, the Department of Tax Intelligence and Enforcement of EIRS on Wednesday sealed off over twenty three establishments in the hospitality industry in Edo Central Senatorial District.
The Nation reports that the hotels were sealed off for non-compliance with the Hotels and Event Centres Occupancy and Restaurant Consumption Law of Edo State also known as Consumption Tax Law.
In Esan West Local Government Area, establishments visited and sealed-off during the enforcement exercise include Eken International Hotel, Joefel Supreme Restaurants & Bar, Hotel Super Dee, Thy Will Hotels and Suits, Unique Mettle Hotel, Big Taste, Mimi Restaurant & Bar, Uncle Sam Hotel, Beverly Hills Hotels, Hotel De Torino, Zeke Hotel, Supreme Hotel, Big Taste Fast Food amongst others.
While in Uromi, the Esan North East Local Government headquarters, about twelve establishments were sealed off. Those sealed-off include Lins Hotel Rodena restaurants, Samco Bensike Hotel, Citadel Hotel and Suits amongst others.
Speaking during the enforcement exercise, the leader of the enforcement team and Director, Tax Intelligence and Enforcement Department, Mr. Victor Okube said “most hotels and eateries in Esan West Local Government Area were found not to be in compliance with the consumption tax law, and were subsequently sealed off.”
He said “the exercise is not punitive but rather, it is to ensure that operators in the hospitality industry, who are also Agents of Collection, comply with the consumption tax law.”
Mr. Okube expressed his displeasure over the recalcitrant attitude of managers of hotels, eateries, restaurants, event centres and their feigning ignorance of the existence of the Consumption Tax Law saying that “before the law became operational in November, 2011, the Edo State Board of Internal Revenue had a stakeholders meeting with all operators in the hospitality industry where they were registered as Agents of Collection, sensitized and educated on the administration and processes of the law in other to have a hitch free implementation and wondered why they claim not to be aware of the law.”
Okube, who took time to educate operators and managers of hotels and eateries on the operations of the tax law, stated that “consumption tax is percent of total sum paid on goods consumed or services rendered in hotels, eateries, restaurants, use of hotel facilities or event centres in Edo State.”
He warned owners and managers of sealed establishments not to temper with the instruments of distrain as breaking of government seal is a criminal and punishable offence.
He said the enforcement exercise continues.
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