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What is the name of
the Law?
Hotel and Event Centers Occupancy and Restaurant Consumption
Law of Edo State, 2011.
What outfits are
covered by the Law?
Hotels, Guest Houses, Events Centers, Fast Food Joints,
Restaurants, Eateries.
What is the Law meant
to achieve?
The law is meant to generate revenue for rapid social and
economic development of Edo State and also act as a catalyst for the growth of
the hospitality/tourism industry.
What is the tax to be
paid on?
The tax is to be paid on any service rendered and facilities
used in the hotels, event centers, fast food joints, restaurants, eateries.
How is the
Consumption tax different from VAT?
The Consumption Tax is an Edo State Government tax to be
paid by any individual/group on services enjoyed/facility used in any of the
outfits covered by the Law; while the value added tax is a Federal tax imposed
on certain goods/ services.
What is the rate of
tax?
The rate of the consumption tax is a 5% charge on the cost
price of any service enjoyed/facility used in any of the identified outfits.
Who pays the tax?
Those who patronize and use the facilities of Hotels, Guest
Houses, Event Centres, Fast Food Joints, Restaurants, Eateries.
Who collects the tax?
Operators of Hotels, Guest Houses, Event Centres, Fast Food
Joints, Restaurants, Eateries.
When will the Law become
fully operational?
The Law came into effect on the 30th of June, 2011. However,
effective implementation commenced on the 1st of September, 2011.
At what point is the
tax collected?
The tax is collected at the point where a consumer makes
payment for any service rendered or facility used in Hotels, Event Centres,
Fast food joints, Restaurants, Eateries.
When are collecting
agents expected to make remittance?
The respective collecting agents are expected to make
remittances on or before the 7th day succeeding the month of collection.
How does the
collection agent make remittance?
Collection Agents are expected to make remittances into
dedicated Internally Generated Revenue (IGR) accounts of Edo State Government
in the designated Banks.
What constitutes a
default?
A default is when a collecting agent fails to make returns
and /or fail to remit taxes collected within the time allowed by the law.
Are there
penalties/sanctions for defaulter?
This range from a fine up to the sum of N2,000,000 (Two
Million Naira), a jail term of up to 6 months or both depending on the gravity
of the default. The tax authority (EIRS) is also empowered by Law to effect the
BoJ principle in respect of defaulting operators.
What does BoJ mean?
BoJ is an acronym for “Best of Judgement”. This is a principle that will be applied by the tax authority in the assessment of the tax liability of a defaulting operator. This implies that the tax authority has the mandate to make an estimation of the tax liability of an operator in the event of the operator withholding full disclosure in services offered or facilities operated.
