FCT hotels fear closure over these 2 tax issues
Nairametrics| Hotels in the Federal Capital territory and Abuja, under the aegis of the Hotel Owners Forum in Abuja (HOFA) has complained that the many and in most cases, unheard of taxes, levied on them by the FCT administration is gradually pushing them into bankruptcy.
According to the President of the association, Chike Ezeudeh, they pay as many as 25 taxes with some as high as N500,000. “It is not easy when you have a business and you are confronted with over 25 different taxes to pay, with some of them as high as N500,000. The names of some of the taxes are so funny; they have what is called Bicycle and Cart levies, which is over N250,000. They also have `parking tax’, which is between N250,000 and N500,000; this is so frustrating.” The News Nigeria quotes him as saying
Apart from the taxes themselves, the manner of enforcement is another issue that leaves a lot to be desired by the association and its members. According to Ezeudeh, the regulator in charge of these taxes, the Abuja Metropolitan Area Council (AMAC) in the name of enforcing tax payment, will come with police and seal the hotels while international guests and others are in their rooms. This practice, he said was only contributing negatively to their business and suggested more diplomatic approaches were needed.
The association further asserted that given the harsh economic climate, if these 2 tax issues were not handled quickly, then business owners may not be able to pay, workers may lose their jobs and corruption may ensue.