Nigeria: Hoteliers Task Fashola On Court Order

Jul 21, 2010

By www.thisdayonline.com

Lagos State chapter of Hoteliers Association of Nigeria [HAN] has appealed to the state governor, Mr Babatunde Raji Fashola, [SAN], to direct the officials of the state Internal Revenue Board [LIRS] to comply with the re-affirmation by the Federal High Court, Lagos, of its earlier order, restraining the state government or any of its officials from collecting consumption tax from hotel operators in the state.

Justice Okechukwu Okeke of the Federal High Court had turned down an application during the week by the state government for a stay of execution of the court's earlier order, restraining it from collecting the tax from hotels in the state.

While urging both parties to maintain the status quo, pending the determination of the substantive suit, Justice Okeke re-affirm the court's restrainig order of last October on the state government and its officials from harassing or forcing the hoteliers to pay the new tax.

In his reaction, President of the Lagos State Chapter of HAN, Aare Tola Odunuga, described the ruling as victory for the rule of law, appealing to the state government to obey the court ruling. Odunuga restated the association's argument that consumption tax amounts to double taxation since the government was already collecting Value Added Tax [VAT] from them. He assured that their members would abide by the final judgment if it eventually goes against them.

A top official of the State Internal Revenue Board, who spoke in reaction on condition of anonymity, said the state government would respect the recent court ruling, stating that the Fashola government believes in the rule of law.

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